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Disruptions to global oil refining are pushing fuel prices up beyond what higher crude costs alone would explain, according to a Dallas Federal Reserve report.
The report warns pressure at the pump could persist even after shipping through the Strait of Hormuz returns to normal.
Refinery damage, shipping constraints, and export restrictions have sidelined as much as 10 percent of global refining capacity, Dallas Fed analysts Jesse Thompson and Garrett Golding wrote in an Oct. 8 report.
The disruptions have widened the gap between crude oil prices and wholesale prices for gasoline, diesel, and jet fuel “well beyond normal,” the analysts said.
Those gaps, known as crack spreads, have exceeded levels reached after Russia’s 2022 invasion of Ukraine, which roiled energy markets….
The report warns pressure at the pump could persist even after shipping through the Strait of Hormuz returns to normal.
Refinery damage, shipping constraints, and export restrictions have sidelined as much as 10 percent of global refining capacity, Dallas Fed analysts Jesse Thompson and Garrett Golding wrote in an Oct. 8 report.
The disruptions have widened the gap between crude oil prices and wholesale prices for gasoline, diesel, and jet fuel “well beyond normal,” the analysts said.
Those gaps, known as crack spreads, have exceeded levels reached after Russia’s 2022 invasion of Ukraine, which roiled energy markets….
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