Fuel prices stay high as refinery outages squeeze global supply
Why it matters: Exxon and Chevron say disrupted refining, not crude alone, is keeping gasoline, diesel and jet fuel costly.
Gasoline, diesel and jet fuel prices are likely to remain elevated even if crude oil retreats, as refinery disruptions from the wars in Russia and the Middle East tighten global fuel supply, ExxonMobil and Chevron said. Melius Research estimated that nearly 10% of global refining capacity is effectively offline, citing the near-closure of the Strait of Hormuz, Ukrainian attacks on Russian refineries and China’s export ban. In the US, gasoline has climbed above $4 a gallon even though West Texas Intermediate is down 26% from its 2026 peak. Chevron CEO Mike Wirth said middle distillates such as diesel, jet fuel and heating oil are under the most strain, with northern hemisphere winter restocking likely to add pressure in the third quarter.