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Refining: High Margins, Profits Persist on Product Tightness

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The global refining sector is expecting to see continued high margins and profits as capacity remains stretched to meet product demand, especially for highly priced middle distillates. Even if much of the world slides into an economic recession, fuel consumption is still expected to grow. Refining executives argue that close to 4 million barrels per day of capacity was shut in during the pandemic, that new capacity is limited and slow to come and that new investments are nonexistent in the Western Hemisphere and limited East of Suez. Even if refineries catch up with rising demand, they still need to fill up low tanks.

Topics:
Refining, Oil Products, Oil Demand, Oil Supply
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