Oil’s Real Crisis Is Not Crude — It’s Refining

The world has enough crude oil. The problem is turning it into usable fuel. A refining crisis, not a crude crisis, is driving the latest oil-price shock through the global economy, according to industry observers. “We’re solving the crude dilemma, but we are not solving the product dilemma,” one analyst said. Refining is the process of converting crude oil into finished products such as gasoline, diesel, and jet fuel. When refining capacity falls short, fuel prices rise even if crude supply is stable. The result: consumers and businesses pay more for energy, adding pressure to an already strained economy.