Saudi and Kuwaiti refineries plan to expand to alleviate the diesel crisis

On the afternoon of Tuesday (June 21), the CEO of Kuwait National Petroleum said Kuwait would be committed to increasing investment to meet the growing demand for oil in
the market.
He said:

"Kuwait has taken the first steps in offshore exploration, the first offshore rig has arrived and will be drilled soon, and at the same time, Kuwait can extract more oil
if needed.
"

Qatar, another country in the Middle East, said ExxonMobil would participate in an offshore gas day expansion project
in the north of the country.
Qatar's energy minister also said that Qatar's energy minister believes that insufficient investment is a key cause of high oil prices, and he called for increased investment in oil and natural gas, and high energy prices cannot be allowed to last
forever.

As refiners in the Middle East expand their refining capacity in the coming year, this will help ease the global diesel supply strain
.

Since the beginning of this year, gasoline and diesel prices in countries such as the United States and the United Kingdom have soared to record levels
due to the lack of supply of Russian oil and other petroleum products.
Europe has long relied heavily on diesel imports, and this time they have turned their attention to the Middle East and the region
.

The International Energy Agency estimates that Middle Eastern refineries will produce 8.
8 million barrels
of crude oil per day by 2023.
That's about 1 million b/d above 2019 levels, enough to make up for Europe's oil supply losses
during this period.

George Dix, an analyst at Energy Aspects Limited, said:

"Middle Eastern start-ups are the only major source of incremental supply of petroleum products this year and will play an increasingly important role as global refining capacity is constrained
.
"

He added that the main impact of the crude oil supply shortage is diesel and low-sulfur fuel oil, while the Al-Zour plant in Kuwait will produce and supply low-sulfur fuel oil
.

The CEO of Kuwait Petroleum said:

"We received more inquiries
about the product.
By the end of this year, we will have about 615,000 barrels of oil converted into diesel and low-sulphur fuel oil
per day.
”

On Tuesday (June 21), he said in an interview with television that it was $30 a barrel.
The "war premium" has been factored into the cost of
oil.
Although economic growth is slowing, there is little sign that the oil market will undermine demand
because of high oil prices.