Global Oil Supply Under Threat as Conflicts Escalate
The global oil supply is facing unprecedented challenges as conflicts escalate in major production regions. Almost half of the world's oil supply, or 45 million barrels per day, comes from areas embroiled in conflict, according to Reuters.
The Middle East remains a hotbed of activity, with the Strait of Hormuz under threat due to ongoing tensions between Iran and Oman. Ukraine's drone attacks on Russian refineries have also disrupted fuel supplies, leading to shortages and rationing worldwide.
The refining capacity in Europe has shrunk by 10% over the past decade, exacerbating the crisis. The continent is now struggling with diesel prices 70% higher than they were in February due to its dependence on imported fuels.
The conflict in Ukraine has already had a significant impact, with Ukrainian forces continuing to strike refineries daily and repairs taking time to bring facilities back online.