Refined products the biggest risk in Middle East conflict – Dallas Fed member

The Middle East conflict will have long-lasting impacts on the global energy market, with the greatest threat to refined products such as gasoline and diesel, said a panelist at the 2026 Federal Reserve Energy Conference hosted by the Dallas Fed.

Even as Middle East crude oil flows have largely returned albeit at higher cost, the flows of refined products have not. And it is refined products that drive prices and inflation in global economies.

Lakshmi Sreekumar at LSR Energy Macro and also member of the Dallas Fed Energy Advisory Council highlighted four types of risks in the Middle East conflict: 1. The menacing of the Strait of Hormuz and international waterways, 2. Strikes on oil and gas production facilities, 3. Strikes on pipelines and ports, and 4. Strikes on refineries.

REFINED PRODUCTS THE GREATEST RISK “The last one is probably where my concern lies most at this moment, and that is the strikes on refineries, which has just taken off so much refined products from the market,” said Sreekumar.

This story was originally published by Hellenic Shipping News. Read the full story at Hellenic Shipping News →