Refining capacity has dropped since the pandemic took hold, which is a factor in the rapid advance of fuel prices. Demand has returned as economies restart and people travel once again, but supply remains tight.
Loss of Russian refined products has exacerbated the imbalance, with Europe now looking elsewhere for fuel. Refiners can't just ramp up output, and utilization rates are already above 90%. Additionally, some refiners are now being reconfigured to make alternate products like biofuel. Biden noted in his letter that the refining shortage is a"global challenge and global concern," with around 3 million barrels per day of global capacity offline since the start of the pandemic."Since the beginning of the year, refiners' margins for refining gasoline and diesel have tripled, and are currently at their highest levels ever recorded."
The president's letter was also addressed to global giants BP and Shell, as well as refiners Marathon Petroleum, Valero Energy and Phillips 66.
This is from the person who said a new refinery will never be built and they are an endangered species.
Your making too much money and giving me none! Is what he really saying!! Burisma!!!
And they all laughed.....