Global Refining Crunch Could Keep Fuel Prices High Into 2027

AI Summary

Global fuel prices are expected to remain high into 2027 due to refining shortages caused by damaged refineries in the Middle East and Russia. Supply disruptions from regional conflicts and export bans have tightened the fuel market globally, with insufficient capacity elsewhere to compensate.

Damaged refineries in the Middle East and Russia and insufficient capacity elsewhere to offset the supply disruptions will likely keep global fuel prices elevated into the next year, analysts say. The Middle East conflict and the Iranian and Houthi strikes on Persian Gulf facilities have slashed supply and deliveries from the region, while intensified Ukrainian strikes on Russian refineries have prompted a ban on diesel exports out of Russia. As a result, the global fuel markets are tightening, also because capacity elsewhere, including in the…