Saudi Aramco’s latest financial figures show that the company’s refining, chemicals and marketing segment posted an adjusted profit before interest, tax, zakat and depreciation of 234 % higher in the third quarter of 2026 compared with the same period a year earlier. The surge, disclosed in Aramco’s quarterly report released on 3 November 2026, was attributed primarily to a dramatic improvement in refining margins.

The company linked the margin uplift to a pronounced shortage of refined products on the global market, especially diesel and jet fuel. The International Energy Agency (IEA) confirmed that export disruptions from the Middle East and Russia, combined with a decline in supplies from several Asian exporters, reduced worldwide diesel and gas deliveries by roughly 1.7 million barrels per day in Q3 2026 versus Q3 2025. September‑year diesel exports fell by about 700 000 barrels per day on a year‑on‑year basis.

These supply constraints pushed wholesale diesel prices to unprecedented levels. In mid‑September, Singapore’s diesel spot price topped US$200 per barrel, while European and U.S. benchmarks approached US$220 per barrel. Similar pressure lifted jet‑fuel prices, narrowing the spread between refined product values and crude‑oil costs.

U.S. Energy Information Administration data corroborated the trend, showing that gasoline‑cracking margins in the United States more than doubled compared with pre‑2025 levels, while diesel and jet‑fuel margins climbed to roughly three times their average annual figures. American refineries operated at a 95 % utilization rate during the quarter, the highest run‑rate recorded for a Q3 period since 2019.

Aramco’s management emphasized that the company’s ability to maintain high processing volumes while crude input costs remained relatively stable amplified the profit boost. The tighter market for refined products increased the differential between the selling price of diesel, jet fuel and gasoline and the cost of the crude feedstock, directly benefitting the profit margins of refineries that stayed fully operational.

While the strong Q3 performance reflects short‑term market dynamics, Aramco’s statement did not indicate whether the elevated margins are expected to persist. The company noted that ongoing geopolitical tensions in the Middle East and continued export restrictions from major producing nations could keep global refined‑product supplies constrained, but it also cautioned that any rapid resolution of these conflicts or a surge in new refining capacity could reverse the current trend.

Overall, the 234 % profit jump underscores the sensitivity of refining earnings to global product supply balances and highlights how external shocks—such as wars and export curtailments—can translate into sizable gains for integrated oil majors that are able to sustain high utilisation rates.

The result also adds to a broader pattern observed across the industry, where refineries with flexible operations and strong feedstock access have captured outsized margins during periods of product scarcity. Analysts will be watching upcoming quarterly reports to gauge whether the tightening of diesel and jet‑fuel supplies is a temporary spike or the beginning of a new pricing environment for refined petroleum products.

Sources (learn more):

alwatan.com.sa — https://www.alwatan.com.sa/article/1188563