Europe's oil refining capacity to shrink by a fifth despite war-driven demand

Europe's oil refining capacity faces a significant reduction, with approximately one-fifth of its ability to process crude oil into fuels like gasoline, diesel, and jet fuel expected to disappear within the next ten years. This decline is occurring even as the current supply chain is strained by the conflict in the Middle East, which has disrupted energy flows.

Despite the immediate pressure on existing facilities and a desire among many European nations to bolster their capacity for future crises, investors are reluctant to finance new infrastructure. This reluctance applies to both Europe and North America, according to reporting by the Financial Times.

The trend suggests a potential vulnerability in the continent's energy security, as the market prioritizes short-term gains or alternative investments over long-term refining stability. This comes amidst broader concerns about fuel availability and rising oil prices.