Russia’s gasoline crisis spreads to St. Petersburg, Belgorod, Kursk, and occupied Luhansk — 40% of refining capacity is offline after Ukrainian strikes [Read Full Article] @WorldNews #RussiaGas ...

Goldman Sachs and Morgan Stanley have issued urgent warnings about Europe's looming diesel shortage, which could reach a decade-low by November 2026. The crisis stems from a combination of factors: Iran's leaked plan to restrict shipping through the Strait of Hormuz, which threatens global oil supply routes; declining refining capacity in key regions like the Middle East and Russia; and reduced Chinese refining activity. Global diesel exports dropped by 35% in July alone, marking the lowest refining output for this time of year since the 2020 pandemic. European diesel reserves are projected to fall to 299 million barrels by November, the lowest level since 2015. The refining bottleneck, not crude oil scarcity, is the primary issue, as Ukrainian strikes on Russian refineries and Iran's export bans have disrupted supply chains. Diesel prices in Belgium have surged past €2.49 per liter, surpassing pandemic-era highs. While Iran's Hormuz plan could temporarily spike oil prices, the core problem lies in the structural shortage of refining capacity, which will persist regardless of geopolitical resolutions.

The secretary said damage to refineries in regions affected by the Iran conflict, combined with changed Russian export patterns and reduced refining capacity, has tightened global fuel supplies and contributed to price pressures in U.S. markets.

ExxonMobil Corp. Chief Financial Officer Neil Hansen identified processing capacity, rather than raw crude availability, as the primary bottleneck across

Energy Secretary Chris Wright told an on-site interviewer at the Defense and Innovation Summit that a proposed 20% charge on cargo through the Strait of Hormuz is "off the table," and credited U.S. military escorts with keeping oil and refined products flowing from the Arabian Gulf. He gave recent throughput estimates, discussed Strategic Petroleum Reserve drawdowns and urged restoring refining runs to ease crack spreads.

Bloomberg Apr 7, 2026: no formal damage assessment to GCC refineries; IEA cites ~7.5 mb/d regional refining capacity — markets added ~3% to Brent on uncertainty.