In case you haven’t noticed, the price of gasoline at the pump has been going up lately. According to AAA, a gallon of gasoline is $3.88—its highest level since October 2022.
One reason for the price increase is that the price of crude oil has moved back above the $95-per-barrel level after Saudi Arabia announced further cuts in its oil output. However, there is a more important reason for the move higher in gasoline, diesel, and other mid-distillates: there is a shortage of refinery capacity in both North America and Europe.
This means it’s a great time to be a company that refines oil…
This post originally appeared at Investors Alley.