Aramco: Global refineries running at full capacity amid fuel price surge

Saudi Aramco warned on August 4, 2026, that global refineries outside conflict zones are operating at near-maximum capacity, leaving little room to absorb supply shocks as fuel prices remain elevated. The world’s largest oil company said the combination of the Middle East war and Ukrainian strikes on Russian energy facilities has tightened refining capacity, pushing some plants offline and forcing others to run flat out. Europe’s diesel benchmark has surged past $150 per barrel, while average U.S. retail gasoline prices stay above $4 per gallon. Aramco CEO Amin Nasser stated that the global refining system is “stretched heavily” with minimal buffers, warning that any major refinery outages could further strain supplies. “There are few shock absorbers left in the system to protect against higher fuel prices,” Nasser said during a conference call. Crude prices have fallen sharply from earlier peaks, yet fuel prices remain stubbornly high. Aramco’s downstream earnings have surged due to stronger refining margins, a trend echoed by Western majors like BP, ExxonMobil, and Chevron. ExxonMobil CEO Darren Woods described the current lack of available refinery capacity relative to global demand as unprecedented. Nasser cautioned that refining margins could stay exceptionally strong through the second half of 2026, but warned that the system’s fragility leaves buyers vulnerable to additional disruptions if refiners face unplanned shutdowns.