Hormuz disruptions to drag into 2027 –  energy analysts warn

• Global refining crunch to keep fuel prices high

• Nigerians to continue facing petroleum agony 

Energy analysts posit that damaged refineries in the Middle East and Russia, amid insufficient capacity elsewhere to offset the supply disruptions will likely keep global fuel prices elevated into 2027.

In addition, the global refining crunch which has kept fuel prices high for many months this year would continue into the next year, according to the analysts.

The Middle East conflict, in particular the Iranian war, and Houthi strikes which targeted Saudi Aramco oil facilities in Jizan and Yanbu, as well as petroleum products and distribution infrastructure in Jeddah have slashed supply and deliveries from the region; while intensified Ukrainian strikes on Russian refineries have prompted a ban on diesel exports out of Russia.

A consequence of all this, are tightening of the global fuel markets, whereas capacity elsewhere, including in the United States, cannot offset the loss of refined product flows.

Nikhil Agarwal, managing director of Globestar Energy, while speaking at Energy Trading Week Middle East in Dubai, said: “Refining capacity will not come back so soon”. as .

Agarwal added: “Bapco is gone, the GTL Qatar is gone, Russian refineries are gone. It will take years to build them back and bring them on board”.

According to the energy expert whose statement was carried by The National, “Crude is surplus globally, but there is no refining capacity available to refine it and bring it to market”.

Other experts echoed that the fuel – especially diesel – markets show the real stress in the oil complex.

For example, July refinery crude throughputs remained at nearly 5 million barrels per day (bpd), which is below levels a year ago levels, at 80.9 million bpd.

The…