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Global refineries to ramp-up output, drawbacks expected - IEA

Economy Materials 13 May 2022 11:16 (UTC +04:00)
Global refineries to ramp-up output, drawbacks expected - IEA
Maryana Ahmadova
Maryana Ahmadova
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BAKU, Azerbaijan, May 13. The International Energy Agency (IEA) expects a significant increase in the activity of global refineries to compensate for the shortfall in the supply of products, Trend reports via IEA's report.

According to the report, global refinery capacity decreased by 1.4 million barrels to 78 million barrels per day in April 2022, largely driven by China. This is also the lowest amount since May 2021.

Thus, IEA forecasts global throughput will grow by 4.7 million barrels per day from April through August 2022, which will help replenish the drained stocks in the third quarter of the current year for the first time in two years. Mainly China, Europe, and the US will contribute to the refill.

However, the tightness on the market might be maintained, according to the report.

“Depending on the severity of the EU sanctions package and the phase-in specifics, Russian product exports could continue at lower levels or stop altogether. US refiners may not be able to operate at the high utilization rates assumed in our forecast. New capacity ramp-up in the Middle East and refinery restarts in Europe, Latin America and Asia could be further delayed,” IEA said.

Meanwhile, according to the Agency, global oil demand in 2022 is projected to an average 99.4 million barrels per day, which is an increase of 1.8 million barrels per day year-on-year.

It is expected that the rapid increase in pump prices and the slowdown in economic growth will significantly restrain the recovery of demand until the end of the current year, and in 2023, the report said.

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