[CLSTR]
< Back to situations

Monitor this situation.

[SITUATION] · [ACTIVE] · [BUSINESS]

2 clusters · 5 sources · 2 days · First seen · Last updated

Global refined oil product supply constraints

Overview

Global refining margins and consumer costs for products like diesel and gasoline have risen significantly, with total costs reaching between $140 and $180 per barrel. This trend is driven by a global refining capacity deficit exceeding 10%.

Supply constraints are attributed to geopolitical factors and infrastructure damage. Middle Eastern refinery operations are approximately 25% below pre-February levels due to export restrictions and physical damage in the Strait of Hormuz and Bab al-Mandab. Russian refineries are operating at roughly 40% below capacity following drone attacks, and China has limited refined product exports since March.

In the Singapore market, the price spread between high-sulphur fuel oil (HSFO) and Dubai crude surged above $10 per barrel in mid-October, a reversal from earlier discounts. This spike is linked to reduced supplies from Russia and the Middle East, alongside rising freight costs, which have reached approximately $36 per barrel for transporting HSFO from Europe to Asia.

Entities

Dubai Crude · China · Russia · Brent · Saudi Aramco

Timeline

  1. [BUSINESS] 3 sources
    Singapore HSFO-Dubai crude crack exceeds $10 per barrel

    Singapore's HSFO-Dubai crude crack rose above $10/bbl in mid-October, driven by supply disruptions from Russia and the Middle East and surging freight costs for replacement cargoes.

  2. [BUSINESS] 2 sources
    Refining margins drive real oil costs above $140 per barrel

    High refining margins and a 10% global capacity deficit are pushing real consumer oil costs to $140–$180 per barrel, fueled by geopolitical tensions and supply constraints in Russia, the Middle East, and China.

Sources

fondiesicav.it · merca2.es · oilprice.com · tokenpost.kr · tradingview.com