Global Refining Network Under Strain as Conflicts Disrupt Supply Chain
The global refining network is facing unprecedented strain due to ongoing conflicts in Iran and Ukraine. This has exposed a critical vulnerability in the supply chain, highlighting that crude oil availability alone is not enough to prevent shortages of essential products like diesel, jet fuel, and petrochemical feedstocks.
According to Oil & Gas Journal, there are approximately 575 active refineries across 107 countries, with global refining capacity standing at over 103 million barrels per day in 2025. However, actual refinery throughput averages only 86.9 million barrels per day, revealing a significant gap between production and delivery.
The issue is further complicated by the concentration of refining capacity in regions like China, India, and the Middle East. As large refineries gain efficiencies through scale and sophisticated conversion technology, they also become more vulnerable to disruptions in transportation networks.