Europe Faces 20% Decline in Oil Derivatives Production Amid Global Crises

Europe's oil derivatives production has declined due to simultaneous pressures on refineries in Europe, the United States, and North America. The halt of supplies from Russia, rising energy prices, and disrupted shipping routes resulting from the U.S.-Iranian war have exacerbated the situation.

Analysts believe this crisis is contingent upon the end of both the Iranian and Ukrainian wars. With operational costs increasing due to the repercussions of the Strait of Hormuz crisis, many old and small European refineries are expected to close, leading to a 20% decline in refining capacity by 2035.

The EU relied on Russia for 53% of its diesel needs, but with imports from Moscow now halted, Europe has turned to other regions. Despite some countries achieving self-sufficiency and possibly a surplus in gasoline fuel, they still import nearly one-fifth of their diesel needs, especially aviation fuel.