Oil Refineries Become Prime Targets as Global Fuel Shortage Worsens
Ten years ago, European countries were closing refineries while Gulf oil states were building new ones. Now, many of these refineries have been damaged in the war between the U.S. and Israel, and Iran. Fuel output from one of the biggest refining regions is not going to be coming back soon. Neither
Source: OilPrice.com
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DW NOTE
The Hormuz closure has cut crude supply, not refining capacity — WTI is trading at $102.85, up 71% year-over-year, because there isn't enough oil reaching markets. Refineries aren't the constraint; they're idling for lack of feedstock. If refineries were genuinely under attack at scale, crack spreads would be blowing out — heating oil at $4.78 and gasoline at $3.18 suggest refining margins are tight but functional, not collapsing.