Global Fuel Prices Surge Amid Trade Route Disruptions and Refinery Closures
Global fuel prices are on the rise due to disruptions on major trade routes, refinery closures, and resurgent demand, making forecasts difficult ahead of the US presidential election where inflation will be a key issue.
Key Points
- Global fuel prices rising due to trade route disruptions and refinery closures.
- Forecasting fuel availability and prices made difficult ahead of US presidential election.
- Challenges in forecasting due to various factors like new refining capacity and disruptions to supply of crude.
- Sanctions on Russia and global trade flows impacting fuel production decisions.
- Global gasoline market facing uncertainties over availability of blending components and environmental regulations.
Pros
- Increases in fuel prices may benefit the profitability of refiners.
- Strong demand growth for refined products is expected to be in line with net gains in refining capacity.
- Global crude refining capacity is forecasted to rise, outpacing demand growth.
Cons
- Potential for premium gasoline prices to reach multi-year highs.
- US government has limited levers to pull to lower gasoline prices.
- Supply of crude and feedstocks may face disruptions, impacting fuel output.