Fuel Oil Shortage Looms as Refinery Disruptions Bite

A fuel oil shortage is expected to emerge in the third quarter of 2026 due to refinery disruptions and tanker traffic constraints.

The refining industry has been affected by wars, damage in Russia and the Middle East, and restrictions on shipping. China has reduced its refining activity and exports to preserve domestic stocks.

This has led to a tightening fuel oil market, which is expected to increase costs for shipowners and power generators. Higher bunker fuel prices could push up shipping rates.