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Global refining throughput to decline for second consecutive year

Oil&Gas Materials 9 March 2020 13:44 (UTC +04:00)
Global refining throughput to decline for second consecutive year

BAKU, Azerbaijan, March 9

By Leman Zeynalova – Trend:

Global refining throughput in 2020 is expected to decline for the second consecutive year, falling below 2017 levels as demand for transport fuels plunges in the wake of the coronavirus, Trend reports with reference to the International Energy Agency

“In 1Q20, refining intake has been revised down by 1.2 million barrels per day (mb/d), primarily due to China, where February runs are estimated at 10.1 mb/d, down 2.7 mb/d y-o-y. February margins saw short-lived support from falling crude oil prices,” reads the report released by IEA.

The report shows that global oil supply fell by 580,000 b/d in February as production from Libya slowed to a trickle.

“At 100 mb/d, output was virtually flat on a year ago, with non-OPEC gains of 2.4 mb/d offsetting declines from OPEC. Robust non-OPEC supply gains of 2.1 mb/d in 2020 and a contraction in demand cut the call on OPEC crude to 27.3 mb/d. In 1Q20, the call is 25 mb/d, 3.5 mb/d below the group’s assumed output for the period,” reads the report.

IEA said that Organization of Economic Co-operation and Development (OECD) industry stocks rose by 27.8 mb to 2 930 mb in January as a build in product inventories more than offset counter-seasonal draws in crude stocks.

“Total oil stocks stood 2.9 mb above the five-year average and covered 63 days of forward demand. Short-term floating storage of crude oil built 1.9 mb in February to 80.2 mb, most of which is owned by Iran. Satellite data show a near 1 mb/d increase in Chinese stocks, reflecting slowing demand,” said the report.

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