Oil refiners worldwide struggle with weak demand, inventory glut

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Refiners cut output by as much as 35 per cent in spring as coronavirus lockdowns destroyed the need for travel

. As lockdowns eased, refiners increased output slowly through late August. But in top fuel consumer the United States and elsewhere, refiners have been decreasing rates for the last several weeks in response to increased inventories, a sustained lack of demand and in response to natural disasters.

Inventories of distillates, which include diesel, jet fuel and heating oil, which usually start building ahead of winter, are brimming this year, leading to a poor outlook for refinery margins for the coming months. U.S. refiners are still producing 20 per cent less fuel than before the pandemic. Chinese, Indian, Japanese and South Korean refineries cut their utilization rates from July and August.

Australia’s Viva said it may be forced to permanently shut its Geelong Refinery in Victoria to curtail losses unless coronavirus-led restrictions are eased and demand picks up. The Australian government has proposed spending billions of dollars to keep the country’s four remaining refineries open. Several refiners in the Philadelphia and Chicago area have put off planned work this autumn to save cash, according to sources familiar with those plants. In total, fewer refineries than usual will shut for seasonal maintenance.“Some refiners are in a difficult position because some don’t have the cash to do maintenance now, but they’re not benefiting from continuing to run,” said John Auers, refining analyst at Turner Mason and Company.

 

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The biosphere needs this to carry on. The people affected need JustTransition and GreenNewDeal . Nobody, no country should be thrown on the scrapheap in transition to sustainable economy.

Trudeau's fault...

Good!

Not spinning it as Trudeau’s fault? Odd

That sucks for my psx stock

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