- The pandemic stifled global refining capacity and sent fuel stockpiles lower.
- A busy hurricane season in the US Gulf Coast could push fuel prices soaring even higher, analysts told Insider.
- Now, upwards of 90% of fuel-making refineries are being utilized, nearly the highest levels in five years.
Reduced fuel-making capacities around the world are putting more pressure on global supplies, and refineries are still recovering from the repercussions of the pandemic just as this year’s hurricane season gets under way.
According to the EIA, 47% of total US petroleum refining capacity is located along the Gulf Coast, and if the area is struck by extreme weather, disaster could follow.
The Atlantic hurricane season is expected to be busier than usual, and JPMorgan analysts said if severe weather forces a significant chunk of refining capacity to go offline in Texas and Louisiana, like previous years, the US could run out of certain fuels.