Refiners Back Wrong Product

petrol fillup

This recent report shows how fragile the refining business is.  New refineries in the Middle East, that have been in planning and development for many years, are now coming on stream but producing the wrong products for a market that changes far more quickly.

“The configuration of the plants, designed to maximize diesel production, seems somewhat at odds with market trends that in recent months have shown stronger demand growth for gasoline and jet fuel than for middle distillates,” the agency said in its Oil Market Report.

It’s a risky market – people would do well to remember that when they complain about the ‘massive’ profits of the Oil Majors.

 

Leave a Reply

Your email address will not be published. Required fields are marked *