Agency: Gulf refinery may reduce processing capacity, with output intended only for the domestic market.

Pankaj Srivastava, Senior Vice President of Commodity Markets at Rystad Energy, stated that as crude oil supply becomes increasingly difficult to export, refineries in the Gulf region may soon have to reduce processing volumes and only supply output for domestic markets. He said, "Three key factors will determine the resilience of the Gulf region's refinery system: the ability to bypass the strait through alternative export routes, the balance between domestic finished oil demand and refining capacity, and the proportion of finished oil exports in current refinery processing volumes. With the war ongoing, shut downs and refinery reductions may continue throughout the region. If the Hormuz Strait remains impassable for the next six weeks, global oil supply of about 2 million barrels per day will face a serious threat."