BAKU, Azerbaijan, March 17. Global refinery operations hit their lowest point of the year in February, with throughput reaching 81.4 mb/d, the International Energy Agency (IEA) says, Trend reports.
However, forecasts suggest a gradual increase in crude processing in the upcoming months, peaking at 85.6 mb/d in August, especially with new capacities coming online in Africa, the Middle East, and Asia, contributing to an annual growth of 1.2 mb/d.
The growth pattern is expected to be more significant in the second half of 2024, with first-quarter crude processing estimated at only 100,000 b/d higher, reaching 82.1 mb/d. This slight increase is due to sluggish activity in OECD and FSU regions, offsetting gains elsewhere.
Meanwhile, refining margins improved overall in February, particularly in the US Midcontinent, which saw a boost following weather-related disruptions. Margins also rose in the US Gulf Coast and Europe, with European profitability benefiting from reduced differentials in sour crude prices.
However, as the agency noted, these gains were mostly seen in the first half of February, as margins dipped back to lower levels by month-end, driven largely by changes in middle distillate cracks. Sour crude margins outperformed sweet crude margins across various regions and complexities.