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1. Global Refined Fuel Crisis Drives Markets - MICHAEL BERNSTAM 090926
Published 1 month, 1 week ago
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1903 BEAUMONT, TEXAS
Global Refined Fuel Crisis Drives Markets
Michael Bernstam analyzes the global refined petroleum crisis, emphasizing that diesel crack spreads have reached record levels due to refinery bottlenecks and geopolitical conflicts. Disruptions in the Strait of Hormuz and drone strikes on Russian refineries have cut refined product supplies by millions of barrels daily. Because U.S. shale oil yields lighter products unsuitable for heavy diesel production and domestic refineries operate near full capacity, elevated fuel prices are projected to persist into 2027. Concurrently, China is de-risking its foreign reserves by purchasing Russian gold to mitigate potential Western sanctions while exploiting Moscow's fiscal strains to demand steep discounts on natural gas imports. (1)
Global Refined Fuel Crisis Drives Markets
Michael Bernstam analyzes the global refined petroleum crisis, emphasizing that diesel crack spreads have reached record levels due to refinery bottlenecks and geopolitical conflicts. Disruptions in the Strait of Hormuz and drone strikes on Russian refineries have cut refined product supplies by millions of barrels daily. Because U.S. shale oil yields lighter products unsuitable for heavy diesel production and domestic refineries operate near full capacity, elevated fuel prices are projected to persist into 2027. Concurrently, China is de-risking its foreign reserves by purchasing Russian gold to mitigate potential Western sanctions while exploiting Moscow's fiscal strains to demand steep discounts on natural gas imports. (1)