Commodities
Home›Commodities›Energy›Big Oil warns fuel stocks are tight as refining capaci…
Big Oil warns fuel stocks are tight as refining capacity is cut
Exxon CFO Neil Hansen pointed to refining as the key constraint, while Bloomberg reported refining capacity has been cut by as much as 10% amid Middle East and Ukraine wars, plus export restrictions.
OilPrice reports that major energy producers, including Shell, Exxon and Chevron, are warning of a global shortage of fuels and suggesting pump prices may stay elevated even if crude oil prices fall. The outlet highlights Exxon CFO Neil Hansen comments to Bloomberg, saying the biggest constraint in the energy system is refining, and that the market may not be focused enough on that bottleneck. OilPrice adds that much of the industry attention has centered on futures prices, even as physical markets diverge due to disruptions to export flows that have spread from the Strait of Hormuz to the Red Sea. Bloomberg, as cited by OilPrice, reported last week that wars in the Middle East and Ukraine, alongside China caps on fuel exports and Russia’s diesel export ban, have effectively reduced global refining capacity by as much as 10%, contributing to tighter availability especially for refined products.
Latest closeWTI crude $80.00 ▼5.5%