At the same time, refining capacity – the facilities that convert crude oil into products, such as diesel fuel and gasoline – has been extremely compromised. For instance, more than 1.2 million barrels per day of oil refining capacity across the region is out of operation due to physical damage, according to J.P. Morgan. Saudi crude oil and refined petroleum product exports are also hindered by attacks on shipping through the Hormuz and Bab el-Mandeb straits. In fact, Chinese refiners actually started reselling crude oil in global markets to earn money to make up for reduced activity in Chinese refineries. Venezuelan oil production has risen from 937,000 barrels a day in 2025 to 1.2 million barrels a day in mid-2026.