The war in Ukraine is strengthening the role of Asia and the Middle East as the world’s main providers of fuels like diesel and gasoline that are crucial to the global economy.
As Europe and the U.S. seek to cut off their dependence on Russian petroleum products, they are facing a shortage of supplies at home. That’s opening opportunities for mega-refineries in places like China and Kuwait to flood the market with fuel.
"By turning their back on Russian oil products, Europe and the U.S. are increasing their dependence on long-haul barrels from the Middle East and Asia,” said Eugene Lindell, head of refined products at industry consultant FGE, based in London.