Europe’s refineries remain under pressure
Europe’s refiners set for more pain
While the end of lockdowns may offer some respite, further consolidation looks inevitable
Refineries in Europe already seeing a new wave of temporary or permanent closures face further shutdowns even as the continent’s Covid-19 vaccination response offers slightly better times ahead. A pandemic-driven demand collapse hammered 2020 profits for most refiners and continues to weigh on margins. “Close to half a million bl/d of crude distillation unit (CDU) capacity closure has been announced”, says Eleanor Budds, downstream research and analysis director at consultancy IHS Markit. In Europe, “we are expecting a further 1mn bl/d at least by 2025,” she continues. Demand slump Transport fuels have been particularly hit from lockdown restrictions on personal mobility and economic weaknes
Also in this section
2 June 2025
It is time to acknowledge that the US-Saudi Arabia nexus is driving a fundamental shift in OPEC strategy
2 June 2025
More than anything else, weak Chinese gas demand is providing relief to EU consumers, but it is uncertain how long this relief will last
30 May 2025
Energy majors argue transition debate has started to factor in the complexities of demand shifts and the wider role for gas
29 May 2025
Sovereignty is the watchword for the new government, but there are still upstream opportunities for those willing to work closely with the state
