A Crunch in Key Corner of Oil Market Leaves Consumers Vulnerable to Heat and War
- Goldman sees “structural tightness” given reduced capacity
- Demand for fuels like diesel, gasoline, jet fuel still robust
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Refining, long one of the more predictable corners of the oil market, is caught in a climate bind.
Environmental pressure and questions over long-term demand are prompting global energy companies, financiers and governments to edge away from fossil fuel investments, curbing the world’s oil processing capacity. And yet, today, appetite for everything from jet fuel to gasoline continues to grow apace, particularly in the world’s large emerging economies.