Middle East expansion further clouds global refining picture
Challenges to refiners are myriad. Another boost in Mid-East Gulf capacity brings more complexity
Refining has always held the potential to be a challenging aspect of the oil industry. But the Covid-19 crisis has put the sector firmly in the spotlight, accelerating some existing trends and ushering in new ones. Global oil demand is expected to fall by 8.5mn bl/d this year. Product balances have been upended; peak oil demand anxieties have sharpened; investments have been curtailed and balance sheets have been weakened. And some integrated oil majors have accelerated portfolio adjustments to prepare for the energy transition. To make matters worse, net refining capacity additions in the Middle East show no sign of slowing. The region is expected to add just under 2mn bl/d of new capacit
Also in this section
23 October 2024
Majors in the region are pushing boundaries and could see significant upside, but longer-term risks remain
22 October 2024
Angola is unlikely to meet the official timeline for an IPO of state-owned oil giant Sonangol in 2026
21 October 2024
Companies operating offshore assets in the region are unlikely to halt development plans for now, even as hostilities intensify
21 October 2024
For the tanker market, recent escalation in the Mideast conflict has largely been offset by soft fundamentals