The International Energy Agency today said global surplus refining capacity — expected to increase by 1 million barrels per day by 2021 — would create downward pressure on margins in the medium term. Via Platts, nearly 8 million barrels per day of refining capacity will be added over the next five years. The disparity between expansions and demand will widen to approximately 2 million barrels per day.
Refining margins in the U.S. have fallen in the past year due in part to low gasoline prices and weak demand for diesel amid mild winter weather.
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