Analysis: Shortage of oil refineries haunts Africa as fuel prices rocket

A shortage of oil refineries across sub-Saharan Africa coupled with soaring crude prices because of the war in Ukraine has left countries dangerously short of fuel supplies, disrupting airlines and causing queues at filling stations. "High outright prices and steep backwardation reduce the incentives to hold discretionary or unsold inventory, leaving spot or short-notice buyers vulnerable to shortages," said Jamie Torrance, head of distillates and biofuels at commodities trading firm Trafigura.

This article was originally published by Reuters on the 1 June 2022.

Read the full article: https://www.reuters.com/world/africa/shortage-oil-refineries-haunts-africa-fuel-prices-rocket-2022-06-01/

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