Oil industry warns of global fuel crisis amid supply shortages

Oil industry leaders and the American Petroleum Institute (API) are warning of a global fuel crisis driven by supply shortages and geopolitical tensions. API Director Mike Sommers stated that the United States will not be able to construct new refineries quickly enough to mitigate the crisis, noting that domestic facilities are currently operating at approximately 98% capacity.

Industry executives, including Chevron CEO Mike Wirth, have warned that the mechanisms previously used to cushion supply and price shocks are largely exhausted. The crisis is being exacerbated by the prolonged closure of the Strait of Hormuz, the depletion of strategic reserves, and attacks on energy infrastructure in the Middle East. One such attack on a Saudi Arabian pipeline reportedly removed at least 2.5 million barrels per day from the market.

In response to rising crude prices, the Trump administration is evaluating the use of the Defense Production Act to ease regulations and encourage short-term investment in existing refining infrastructure. Meanwhile, the impact is already being felt by consumers, with diesel prices reaching record highs.