Global Oil Refining Industry on Brink as Iran War Disrupts Fuel Supplies
The ongoing Iran war has pushed the global oil refining industry to its limits, causing diesel and gasoline prices to remain elevated for years.
According to Ron Boussi's opinion article in Reuters, while oil markets adapted relatively well to the sudden loss of a fifth of global crude supplies from the Middle East during the conflict, workarounds for the refining industry have been much more limited.
The divergence between crude and fuel prices is striking. Benchmark Brent crude oil currently sits at around $90 a barrel, a 25% increase from pre-war levels but still below the wartime peak of $118.
Refined products, however, have not enjoyed the same relief, with European diesel prices surging more than 70% since the war began and US gasoline prices climbing around 60%.