Oil prices play a key role in shaping platinum prices because oil refineries rely heavily on platinum as a catalyst to turn crude oil into usable products like gasoline and diesel. When oil prices climb, refineries often ramp up production to cash in on higher profits, which means they need more platinum to keep their processes running smoothly.https://www.interactivebrokers.com/campus/traders-insight/securities/commodities/why-a-structural-deficit-and-hydrogen-economy-could-boost-platinum/[1]
Platinum acts like a helper in the refining stage, speeding up chemical reactions that break down crude oil. A big chunk of the world’s platinum gets tied up in these oil and gas operations, so refiners watch platinum costs closely.https://www.interactivebrokers.com/campus/traders-insight/securities/commodities/why-a-structural-deficit-and-hydrogen-economy-could-boost-platinum/[1] If oil prices surge due to events like geopolitical tensions or supply cuts, such as blockades on Venezuelan oil tankers, refineries may expand or maintain output, driving up demand for fresh platinum supplies.https://www.economies.com/commodities/palladium-news/palladium-rallies-above-$1700-on-technical-buying-47962[3]
Higher oil prices can also push refiners to buy or lease more platinum outright, especially when lease rates spike amid tight markets. Experts note that oil firms are big buyers, using tools like futures contracts to hedge against platinum price swings tied to their operations.https://www.interactivebrokers.com/campus/traders-insight/securities/commodities/why-a-structural-deficit-and-hydrogen-economy-could-boost-platinum/[1] For instance, trading in platinum derivatives jumped 22 percent in recent quarters, with oil and gas players leading the interest.https://www.streetwisereports.com/article/2025/12/15/platinums-impressive-ascent-could-continue-through-2026.html[4]
On the flip side, falling oil prices can slow refinery activity, easing platinum demand and putting downward pressure on its price. Global events that flood the oil market, like potential easing of sanctions on Russian supplies, often lead to softer oil prices and less need for platinum catalysts.https://www.economies.com/commodities/palladium-news/palladium-rallies-above-$1700-on-technical-buying-47962[3] Platinum’s price sensitivity to oil shows up in real market moves, as seen when oil rebounded on risks and platinum climbed alongside.https://fintel.io/news/commodities-oil-prices-rebound-on-geopolitical-risks-gold-stronger-4442[5]
This link holds even as platinum finds new uses, like in hydrogen fuel cells, but oil refining remains a steady driver that ties the two commodities together through everyday industrial needs.https://www.interactivebrokers.com/campus/traders-insight/securities/commodities/why-a-structural-deficit-and-hydrogen-economy-could-boost-platinum/[1]
Sources
https://www.interactivebrokers.com/campus/traders-insight/securities/commodities/why-a-structural-deficit-and-hydrogen-economy-could-boost-platinum/
https://www.fxempire.com/forecasts/article/platinum-price-forecast-gold-rotation-fuels-platinum-breakout-toward-2300-by-2026-1567402
https://www.economies.com/commodities/palladium-news/palladium-rallies-above-$1700-on-technical-buying-47962
https://www.streetwisereports.com/article/2025/12/15/platinums-impressive-ascent-could-continue-through-2026.html
https://fintel.io/news/commoditie