US and Europe Face Fuel Risks From Refinery Closures

Policymakers in Europe and the United States have overseen a long-term decline in domestic oil refining capacity. This trend has led to the widespread closure of processing plants and a growing reliance on outsourced fuel supplies to meet energy demands.

In Europe, the retreat from domestic refining has left the region dependent on external sources for essential fuels, specifically diesel and gasoline. This shift exposes the region to supply chain vulnerabilities and external market volatility.

In the United States, the situation presents a paradox. Despite its position as the world's largest oil producer, the country has also seen a reduction in refinery capacity. These closures have resulted in uneven fuel costs across different regions of the country, creating localized price spikes despite high overall production levels.