Fuel prices stay high as 10% of global refining capacity goes offline
Why it matters: Exxon and Chevron warn diesel, jet fuel and gasoline markets could tighten further into the third quarter despite lower crude prices.
Fuel prices are likely to remain elevated even if crude oil falls, as disruptions from the wars in Russia and the Middle East squeeze global refining capacity, ExxonMobil and Chevron said. Melius Research estimated nearly 10% of the world’s crude-processing capacity is effectively offline because the Strait of Hormuz is largely closed, Ukrainian attacks have hit Russian refineries, and China has banned exports. That has left remaining plants running at full tilt and pushed fuel-making margins to record highs. In the US, gasoline has climbed above $4 a gallon even as West Texas Intermediate has dropped 26% from its 2026 peak. Chevron CEO Mike Wirth said middle distillates such as diesel, jet fuel and heating oil face the most pressure as winter restocking approaches.