Global Oil Shortages Escalate as Ukraine and Iran Conflicts Intensify
The ongoing conflicts in Ukraine and Iran have significantly worsened global oil shortages. According to estimates by Goldman Sachs, the refining deficit due to damaged Russian refineries and products stuck in the Strait of Hormuz or the Black Sea totals 6.5 million barrels a day.
In the Middle East, Iran's attacks on energy infrastructure using autonomous drones have led to the closure of over 1.2 million barrels per day of oil refining capacity. The conflict is escalating with recent drone attacks on Saudi Arabia's Abqaiq oil production hub and Egyptian ports on the Mediterranean Sea.
Meanwhile, Ukraine has successfully bombed over 11 major Russian refining complexes, knocking out a significant share of Russia's fuel-making capability. Estimates suggest that between 30% to 50% or even up to 60% of Russia's refining capacity is offline.