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