Global fuel prices are likely to remain high until 2027 due to a shortage of refining capacity, despite potential increases in crude oil supply if the Strait of Hormuz reopens. Damage to refineries in the Gulf and Russia, along with limited spare refining capacity elsewhere, has created a significant gap between crude oil prices and the cost of refined products like petrol, diesel, and jet fuel. Experts predict that even if crude oil becomes more abundant, the lack of refining infrastructure will prevent prices from dropping significantly in the short term. Key facilities such as Bahrain’s Bapco refinery and Qatar’s Pearl gas-to-liquids plant have been damaged or shut down, further reducing refining capacity. According to industry reports, global refinery operations are currently running at lower levels compared to previous years, and this trend is expected to continue.
Bias read (Center): The article discusses economic factors affecting fuel prices and does not present a clear ideological stance. It provides expert opinions and data without overtly favoring one perspective over another.
