Refinery Outages Pushing Up Gas Prices More Than Cost of Crude Oil, Fed Says
Gasoline prices were at record highs for autumn, with a significant portion of global refining capacity offline.
TL;DR
- Global oil refining disruptions are increasing fuel prices beyond what higher crude costs suggest.
- Refinery damage, shipping constraints, and export restrictions have idled up to 10% of global refining capacity.
- Crack spreads (the difference between crude and wholesale fuel prices) have widened significantly, exceeding levels post-2022 Ukraine invasion.
- Fuel price pressure may continue even after normal shipping through the Strait of Hormuz resumes.