The number of oil refiners that have reduced their output is increasing. Output cut by at least 1.3 million bpd done by European refineries. With the global lockdown of 3 billion people or roughly 40 percent of the world’s population, demand for fuel is in free fall.
Oil demand was down 26 million bpd this week, according to Goldman Sachs. The level is more than 25 percent for 2019. So far for April, production cut by at least 1.3 million bpd done by refiners in Europe. The refiners are expected to reduce production even deeper. Previously, the region has planned around 700,000-750,000 bpd of refinery turnarounds.
As demand for fuel deteriorates, Tupras in Turkey has cut runs by 20-50 percent at its oil refineries. In the past two weeks, Britain’s Grangemouth oil refinery has closed two of its three crude units. Refineries in Spain, Germany, and Italy have also fully shut down or trimmed their output.
India’s Mangalore Refineries and Petrochemicals Ltd and Indian Oil Corp (IOC) have slashed their crude processing by around 33 percent. Force majeure has been declared by both refineries on their crude purchases.
Because of concerns over worker’s safety, Canada’s North Atlantic Refining Ltd told stakeholders that production at its Come-by-Chance refinery was stopped.
