Reuters: Refiners Falter To Meet Demand

May 31, 2022
1:56 AM EDT
Last Updated 32 min ago

Global refiners falter in efforts to keep up with demand
By Laura Sanicola

https://www.reuters.com/markets/commodities/global-refiners-…

May 31 (Reuters) - Refiners worldwide are struggling to meet global demand for diesel and gasoline, exacerbating high prices and aggravating shortages from big consumers like the United States and Brazil to smaller countries like war-ravaged Ukraine and Sri Lanka.

World fuel demand has rebounded to pre-pandemic levels, but the combination of pandemic closures, sanctions on Russia and export quotas in China are straining refiners’ ability to meet demand. China and Russia are two of the three biggest refining countries, after the United States. All three are below peak processing levels, undermining the effort by world governments to lower prices by releasing crude oil from reserves.

Two years ago, margins for making fuel were in the dumps due to the pandemic, leading to multiple closures. Now, the situation has reversed, and the strain could persist for the next couple of years, keeping prices elevated.