Squeezed between shrinking exports to the United States, game-changing giant Middle East refineries
and dwindling domestic demand, more European refineries are likely to face the
axe.
Demand for refined product in Europe is set to decline by 170,000 bpd every
year over the coming five years, leading to the closure of two small refineries
or one large refinery.
Oil major Shell announced that it was considering the sale of the bulk of
its downstream business in Italy, following the recent sale of refineries in
Britain and Germany. Overall European refining margins, or cracks, averaged at $5.46
a barrel in March, compared with $22.83 a barrel in the United States, where
refiners enjoy significantly lower crude prices.
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