Fuel Markets Tighten Amid Downstream Refinery Constraints

Vitol CEO Russell Hardy says global fuel markets are 'tight and inflexible', despite increased flows out of the Persian Gulf.

Refined product inventories are still drawing, with a surplus around the world being depleted due to insufficient refining capacity.

The real stress in the oil markets is downstream, where refineries in the Middle East and Russia face constraints due to conflicts and export bans.

In the United States, refineries have been running at maximum capacity this summer, but high rates are unsustainable as maintenance is long overdue.