US Energy Secretary Warns Refining Constraints Will Keep Gas Prices High
US Energy Secretary Chris Wright spoke about the ongoing global volatility in energy markets. He noted that crude oil flow out of the Persian Gulf has surged back to pre-conflict levels, reaching approximately 18 million barrels per day.
This increase is seen as a positive development, but Wright emphasized that domestic refining constraints are still a major issue. The administration attributes these constraints to historical refinery closures in the US and the impact of the war in Ukraine on global refining capacity.
Wright stated that rebuilding processing capacity will take time, and consumers should not expect immediate relief at the pump. He also drew attention to the role of Iranian behavior in the market, saying 'I certainly can’t predict Iranian behavior.'