Energy

Refining capacity has not expanded at anywhere near the pace of upstream crude production in recent years. A combination of plant closures in mature markets, particularly in Europe and parts of North America, alongside a slower-than-expected buildout of new capacity in Asia and the …

Over the past month, prices have been essentially flat, up just 0.04%, suggesting the market has found a degree of stability at an elevated level rather than continuing the sharp swings seen in earlier periods of the European energy crisis. That stability, however, masks …

The strait's importance stems from geography as much as volume. Major Gulf oil producers — Saudi Arabia, the UAE, Kuwait, Iraq, and Iran itself — rely on Hormuz as their primary export route, with few viable alternatives able to absorb anywhere near the same …

The logic behind ramping production during a period of heightened regional risk may seem counterintuitive, but it reflects a calculated bet. By demonstrating that alternative supply is readily available, Gulf producers help cap the risk premium that would otherwise build into prices, protecting long-term …

That combination has left energy markets in an unusual position, pricing in elevated but not extreme risk. Rather than treating the conflict as a binary outcome — full-scale war or swift resolution — traders appear to be weighing a wider range of scenarios, informed …

The proximate causes of the move are twofold. Repeated Ukrainian strikes on Russian refining infrastructure have disrupted domestic production capacity, damaging facilities and forcing extended downtime at key sites. At the same time, higher crude oil costs — themselves elevated by the ongoing US-Iran …

The concern centers on the Strait of Hormuz, through which roughly one-fifth of global oil and LNG trade passes. Since Europe pivoted away from Russian pipeline gas following the invasion of Ukraine, the continent has become considerably more reliant on seaborne LNG cargoes to …