23 Hrs
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الاقتصادية
War highlights Western oil refining decline
The global refining industry is facing a severe crisis related to the decline in oil refining capacity and the industry’s push to operate refineries at maximum capacity to meet the high demand for fuels, especially diesel and gasoline, due to the impacts of the war in Iran and the conflicts between Russia and Ukraine. These geopolitical disruptions have led to record-high diesel prices in Europe and the Americas, with U.S. retail prices exceeding $6.50 per gallon, and Brent crude oil prices surpassing $100 per barrel. Refineries are experiencing a slowdown in scheduled maintenance and postponements in an attempt to boost production, but this increases the risk of breakdowns and makes it harder to resolve the issue quickly, as currently, no refineries are operating at full capacity to convert oil into consumer products sufficient to meet the growing global demand. This situation presents political and economic challenges, with governments moving towards increasing supply or relaxing fuel specifications amid concerns about escalating fuel shortages worldwide.
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