2 weeks ago

Refinery Attacks in Russia-Ukraine War Trigger Global Fuel Price Surge

Refinery Attacks in Russia-Ukraine War Trigger Global Fuel Price Surge
Refinery attacks in Russia-Ukraine war and West Asia conflicts trigger global fuel price surge · wionews.com

Some countries are fighting wars right now.

During these wars, places that make fuel, called refineries, have been attacked.

Ukraine used flying machines called drones to attack fuel factories in Russia.

Another group called the Houthis attacked a fuel factory in Saudi Arabia.

When fuel factories get damaged, there is less fuel for cars and trucks.

When there is less of something, it usually costs more money.

So diesel fuel prices are going up around the world.

In the United States, a gallon of diesel now costs about $5.32, which is more than it cost last month or last year.

The fuel factories are already working very hard to make more fuel, but they cannot make enough.

Experts think fuel prices will probably stay high for a while.

Key facts

European refining margins
Up 10%
US diesel futures (Monday)
$4.19 per gallon (+7.4%)
US average retail diesel price (Tuesday)
$5.32 per gallon
Retail diesel a month ago
$4.88 per gallon
Retail diesel a year ago
$3.71 per gallon
3-2-1 crack spread
Above $70 per barrel (typical range: under $20)
Refinery utilization rates
Exxon and Chevron 95-97%; Shell above 100%
US diesel inventories
Lowest for this time of year in three decades

Quotes

Sumit Ritolia

Kpler lead analyst for refining supply and modelling

“"Refining margins remain elevated because every additional barrel of product has become significantly more valuable than every additional barrel of crude."”
wionews.com

Sources

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