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
6 February 2026
The long close relationship between key supplier Qatar and pivotal buyer Japan becomes even deeper following new landmark deal
6 February 2026
Partnerships across the LNG value chain have evolved over time, growing in both complexity and importance, according to panellists at LNG2026
6 February 2026
Nigeria's mega-refinery is still trying to solve many challenges, all while its owner talks up expansion
5 February 2026
While broadly supportive of EU efforts to tackle methane emissions, representatives of the gas industry warn it could deter supply contracting if timelines and compliance requirements are not made more pragmatic
