Global Fuel Markets Are Out of Slack as Wars Push Prices Higher

Global fuel markets are running with zero slack as wars in the Middle East and Ukraine stretch refining capacity to its limits, raising the risk that brief outages could send prices to new highs. The US and Israel's war on Iran caused the biggest oil supply disruption in history, with refined products like gasoline and diesel seeing outsized price jumps. US crack spreads hit a record near 70 dollars in mid-July, more than double pre-war levels, signalling a profit bonanza for refiners but unsustainable operating rates.