Rallying oil refining margins have ground to a halt in Asia. Currently at a 2015 low, they could drop another 20-30 percent this quarter, led by declining profits in diesel as supply from the Middle East adds to a global glut. While softer Asian demand for diesel will be a drag, margins will likely draw some support and stay above last year’s low as the region’s gasoline uptake remains healthy. Asian refining margins enjoyed a stellar run in the first half of this year on weak oil prices and hit a two-year top above $10 per barrel in June. But they have almost halved this week to $5.60 with supply of refined products from traditional importers in the Middle East building up. “We see refining margins weakening on worsening diesel fundamentals, particularly east of Suez, though gasoline should be supportive,” said Robert Campbell, head of oil products research […]