Goldman Says Refineries to Shut on Less Demand, New Projects
- Mega-refineries to start while fuel demand still recovering
- Plant closures more likely in developed nations, bank says
This article is for subscribers only.
The global refining industry is entering a consolidation phase as slowing oil demand growth is set to coincide with large-scale projects that will start coming online next year, according to Goldman Sachs Group Inc.
The demand hit from the coronavirus is yet to cause any delays in a number of mega-refining projects, most of which are in China and the Middle East, that will start operations from 2021 to 2024, the bank said in a note. This will cause global utilization rates to be 3% lower over this period than in 2019.