Refinery Margins Rise Due to Developments in the Global Oil Market
Global refinery margins have reached record levels due to shipping concerns in the Strait of Hormuz and international supply constraints.
The attacks by the US and Israel on Iran and concerns over shipping in the Strait of Hormuz have led to a supply crunch in the global petroleum products market. As a result of these developments, refinery margins in the Mediterranean basin tripled to $78.5, putting pressure on fuel prices in Turkey.
Impact of the Strait of Hormuz and Conflicts
The attacks launched by the US and Israel against Iran have heightened concerns regarding shipping security in the Strait of Hormuz, driving petroleum product prices upward.
Margin Increase in the Mediterranean Basin
The refinery margin in the Mediterranean basin, which stood at $27 per barrel before the attacks, rose to $78.5 on September 8 due to conflicts and global supply losses.
Record Levels on a Global Scale
According to International Energy Agency reports, while seasonal demand and supply deficits have increased margins in the Atlantic Basin, the diesel margin in the US has exceeded $100.
Reflections and Measures for Turkey
In Turkey, which references product prices in the Mediterranean market, these global increases are creating upward pressure on fuel prices.
To limit the reflection of the increases onto consumers, the sliding scale system (Eşel Mobil) was put into effect on March 5, establishing a balancing mechanism through taxes.