Refinery Problems Drive Fuel Prices Higher!
The inability of existing refining capacity to fully replace lost production is increasing the risk of fuel shortages in the market.
Problems affecting oil refineries in the Middle East and Russia are increasing pressure on global fuel markets and could keep prices at elevated levels. The inability of existing refining capacity to fully replace lost production is also increasing the risk of fuel shortages. Ongoing conflicts in the Middle East and attacks on energy facilities in the region have negatively affected the supply of petroleum products. At the same time, Ukrainian attacks on Russian oil refineries have led Russia to impose restrictions on diesel exports.
Experts say the main issue is not a shortage of crude oil. Although there is enough crude oil available globally, there is insufficient refining capacity to convert it into gasoline, diesel and other fuel products.
According to the International Energy Agency, global refinery output in July was approximately 5 million barrels per day lower than a year earlier. Experts believe it could take a long time for damaged refineries to resume operations. As a result, tensions in global fuel markets are expected to continue into next year.