SINGAPORE, April 28 Reuters Asian oil refiners are reaping their highest profits ever this week, spurred by higher fuel demand during peak holiday seasons as more economies recover from the COVID19 pandemic while the region ramps up exports to Europe to replace a Russia shortfall.

Profit margins for complex refineries in Singapore, the bellwether for Asian refiners, tipped over 20 a barrel on Wednesday.

Gasoline, diesel and jet fuel crack spreads all hit fresh record highs of 22.28, 47.53 and 37.38 per barrel respectively on Thursday, thanks to a transport boom as more economies ease COVID restrictions. 

The demand strength comes at a time when supplies remain tight following lower fuel exports from China and disruption to trade flows of Russian oil due to international sanctions, industry analysts said.

The current strength in cracks for transportation fuels are likely due to the convergence of improving demand and tightened regional production, Sandy Kwa, senior analyst at Boston Consulting Group, said, adding there is also some seasonal support coming from the Ramadan month in Indonesia and Malaysia.

Meanwhile, regional production is subdued due to the spring refinery maintenance season, as well as low runs in China… The current robust margins will incentivize the available refineries to maximize runs, and even encourage those on turnarounds to return online.

Strong margins will benefit exportoriented refiners such as South Korea39;s SK Energy and SOil Corp,…