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Analyst Warns Of A Fuel Shortage Crisis In The U.S.
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[OilPrice]
  • Low fuel inventories could lead to a crisis this summer in the U.S.

  • Refinery outages could be disastrous during this period of supply tightness.

  • Sankey: we've never seen inventories this low, particularly in the northeast.
Very low inventories of oil products in the United States and a shortage of refining capacity have laid the foundations for an oil shortage crisis in the United States this summer, Paul Sankey, Lead Analyst at Sankey Research, told CNBC in an interview on Thursday.

There is a global shortage of refining capacity, and currently the energy world "is completely insane", he noted.

Some 1 million barrels per day (bpd) of refinery capacity in America has been shut permanently since the start of the pandemic.
Why permanently, and what would it take to reopen it?
In the U.S., operable refinery capacity was at just over 18 million bpd in 2021, the lowest since 2015, per EIA data. Rising demand since economies reopened and people returned to travel, combined with lower refining capacity and very tight distillate markets have drawn down U.S. product inventories to below seasonal averages and at multi-year lows, with record-low inventories reported on the East Coast.
Posted by: NN2N1 2022-05-22
http://www.rantburg.com/poparticle.php?ID=633623