As the recent conflict between Israel and Iran raged, the world fixed its eyes on the Gulf. Missiles fired across the world’s most important oil producing region raised the specter of global economic shocks. While the fate of roughly 14mn b/d of crude and condensate exports from the region topped international markets’ concerns, the episode also highlighted the Gulf’s growing role as a supplier of refined products on which regions like Europe depend.
Gulf oil producers in recent years have built up their refining capacity with a string of new refineries and big-ticket upgrades (MEES, 30 May). Meanwhile, Europe has closed or scaled back much of its domestic refining capacity often in favor of specialist products like base oils and biofuels. To meet its diesel demand, it has turned away from Russia and towards the US, while the Gulf has emerged as the major supplier of jet fuel. (CONTINUED - 830 WORDS)
