Refinery Profits Soar as Global Fuel Shortages Intensify
Global refinery profits are soaring due to disruptions in fuel supplies and rising prices for refined products such as diesel, gasoline, and jet fuel. The oil and gas refining and marketing subindustry group is the top performer among S&P 500 groups this year, with a 145.4% increase through Friday's close.
The price of crude oil fell on Monday, but prices for refined products continued to climb due to shortages in refining capacity. The national average retail price for diesel fuel hit an all-time high of $6.51 per gallon, according to AAA.
Ukrainian attacks have damaged significant chunks of Russian energy infrastructure, prompting Russia to ban exports and reducing product availability. Strikes on refinery infrastructure in the Persian Gulf have also taken offline a substantial amount of refining capacity.
China has restricted exports of key fuels for months due to supply chain disruptions, while U.S. politicians are considering similar export bans amid industry complaints about high diesel prices.