Tough times ahead for US refiners
Slumping global oil consumption, tightening margins and throttled-back throughput pile on the pressure
The US refining industry has been on an upward trajectory over the past decade. Global oil consumption growth has been solid, while trapped Western Canadian and sometimes US crude has contributed towards significant price discounts and a strong competitive advantage among US refiners compared with their global competitors. But the ride came to a sudden end in the last third of March, when the sector suffered massive demand destruction as Covid-19 closed down economies and enforced global lockdowns. 66.2mn bl/d – global crude throughput in May US refining margins initially looked as if they might hold up, despite a large drop off in crude runs, because of the short-lived oil price w
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