Oil prices — They impact everyone, they’ve been volatile as hell and few understand how they really move. But we all know the pain of higher prices.

Earlier this month, energy prices soared again after OPEC+ surprisingly cut oil production. But relief is coming to one part of the oil supply chain — which could help lower prices.

First, some oil knowledge:

• Well-to-tank: Before consumers can use oil, it must be refined into gasoline, diesel and other petroleum products.
• COVID impact: In recent years, there’s been a shortage in refining capacity — which helped send oil prices up.

Per Bloomberg’s Javier Blas, new refineries are finally coming online after being delayed during COVID. This year and next, oil refinery capacity is expected to see its largest increase since 1977.

More refining capacity gives consumers hope that oil inflation will stay down — backing up the case to pause interest rate hikes.