Now Reading: Oil CEOs predict split market: bearish crude, bullish fuels
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Oil CEOs predict split market: bearish crude, bullish fuels
Oil company CEOs see a split in the global oil market, with crude prices under pressure but refined fuel products set to stay strong. Shell CEO Wael Sawan described a "triple threat"…
Oil company CEOs see a split in the global oil market, with crude prices under pressure but refined fuel products set to stay strong. Shell CEO Wael Sawan described a "triple threat" squeezing the market for oil products: attacks on Russian refineries, and shipping dangers in the Persian Gulf and Red Sea.
The bullish view on fuels comes from reduced refining capacity due to these disruptions. While crude supply is expected to remain ample, the capacity to turn it into usable products like diesel and petrol is tightening, pushing up fuel prices.
Indian Opinion Analysis
The refining crunch Shell describes echoes a pattern seen since Russia's invasion of Ukraine in 2022, when sanctions and attacks reshaped global fuel trade flows. India, a major importer of crude and exporter of refined products, faces a mixed impact: lower crude costs benefit its oil marketing firms, but higher global fuel prices could widen its trade deficit. The real test is whether OPEC+ raises output later this year, which would ease crude supply further but not solve the refining bottleneck. Indian refineries with secured feedstock will gain, while those dependent on spot cargoes face margin pressure.
Source: ndtvprofit.com
This story was synthesised by AI from the source linked above.
