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
16 January 2026
The country’s global energy importance and domestic political fate are interlocked, highlighting its outsized oil and gas powers, and the heightened fallout risk
16 January 2026
The global maritime oil transport sector enters 2026 facing a rare convergence of crude oversupply, record newbuild deliveries and the potential easing of several geopolitical disruptions that have shaped trade flows since 2022
15 January 2026
Rebuilding industry, energy dominance and lower energy costs are key goals that remain at odds in 2026
14 January 2026
Chavez’s socialist reforms boosted state control but pushed knowledge and capital out of the sector, opening the way for the US shale revolution
