A glimpse of recovery for distillates

Falling runs and Middle East maintenance will tighten European distillate supply in Q4

After a prolonged glut stocks will soon start to draw. Not crude oil-but European distillates, the market for which will tighten in Q4 as lower refinery runs curb output and outages from facilities in the Middle East reduce its exports. The fourth quarter usually sees a shortfall of distillates in Europe. But this one will be deeper. European refinery runs are expected to average around 12.3m barrels a day in Q4, down 200,000 b/d from Q3 levels. In Q1 2017 they are expected to fall further, down to 12m b/d, according to Energy Aspects. Both the 400,000-b/d Yasref refinery on Saudi Arabia's Red Sea coast and the 0.53m-b/d Ras Tanura facility on its Gulf coast are expected to undergo large-sca