Russian Capacity Loss Drives Global Supply Crunch, Spiking Fuel Prices
- Reports
- 3
- Developments
- 1
- Repetition
- 67%
New informationRepeats or wire copies
What happened
A global supply crunch is being driven by lost refining capacity in Russia and the Middle East, alongside a decline in refined output from China. ExxonMobil reported achieving record fuels utilization outside the Middle East, with 100 percent crude utilization at US Gulf Coast refineries. US gasoline prices remain above $4 per gallon, while diesel prices are near all-time highs above $6 per gallon.
From indiatimes.com
Why it matters
The supply shortfalls and steep price increases have caused oil giants to report more than doubling of quarterly profits due to spiking commodity prices and refinery margins. Analysts note that while margins are expected to moderate as refinery runs recover, this recovery will take time.
ExxonMobil is expanding its Texas refinery capacity amid global market stress related to issues in Russia and the Strait of Hormuz.
From indiatimes.com
Who's involved
- ExxonMobilReported record fuels utilization and saw profits more than double due to spiking commodity prices
- ShellMay see increased market value and profitability due to reduced global supply from Russia
- ConocoPhillipsMay see increased commodity prices and margins due to supply crunch from Russian losses
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- ShellSpeculative
The reduced global supply from Russia might increase market value and profitability
- ExxonMobilSpeculative
The spiking commodity prices and margins could lead to doubled quarterly profits
- ConocoPhillipsSpeculative
The supply crunch from Russian losses may increase commodity prices and margins
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The entities involved
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ExxonMobil
American multinational oil and gas corporation