Global Fuel Supply Strains As Refineries Run At Record Utilization Rates
The global fuel supply is facing severe strain due to various disruptions in the energy system. According to some analysts, the physical market has been impacted more significantly than futures charts, with a substantial gap between prices.
Rabobank senior energy strategist Joe DeLaura warned that 'We're in a diesel supply crunch right now because none of the Persian Gulf refineries can get product out.'
Big Oil is joining the chorus of warnings, with Shell, Exxon, and Chevron stating that prices at the pump will remain high despite fluctuations in crude oil prices.
The constraint pain point in the energy system is refining, according to Exxon's chief financial officer Neil Hansen. He emphasized that this issue 'perhaps the market isn't fully focused on.'