Shell CEO Wael Sawan has said that the ongoing crisis in the Middle East could lead to broader supply problems in the oil products market, APA-Economics reports.
He noted that pressure is already being observed in the jet fuel market, and in the next phase, there may be a risk of shortages in diesel, followed by gasoline.
According to him, the approaching summer season in the Northern Hemisphere — a period marked by increased car travel — will further intensify these pressures.
According to estimates by S&P Global Energy CERA analysts, approximately 14 million barrels per day of oil products and key crude oil flows have been disrupted due to the ongoing war in the Middle East. Against this backdrop, jet fuel prices in Europe have reached record highs, while sharp increases have been recorded in the U.S. market.
The company’s CEO stated that the problem is not limited to specific types of fuel, and the main cause lies in disruptions across the physical supply chain — including transportation, storage, and production processes. This has led to the impact spreading across the entire oil products market.
Analysts note that more than half of global refining capacity is directly dependent on the situation in the Middle East, and damage to infrastructure makes it difficult to quickly restore supply.
In addition, stockpiling trends may further intensify tensions in the market. U.S. exports of oil products declined in March, with jet fuel exports dropping sharply compared to previous levels, and gasoline exports also decreasing.
The reasons cited include military tensions in the Middle East, supply risks in the Strait of Hormuz, disruptions to physical oil flows, and stockpiling behavior among market participants.
