Oddbean

Mini Refineries Risk Closure Over Profit Concerns ========== Smaller refineries, especially in Africa, are at risk of closure due to downward return on investment as new mega refineries come online and China's economy falters; Lacklustre demand growth, largely reflecting China's economic torpor, and surging capacity from new facilities are driving the decline in earnings; Refineries globally will process about 900,000 barrels more crude this year than last, with new plants in Nigeria, Mexico, China, and Oman contributing to the increase; Margins are likely to slide, potentially tightening supply, but there are limits to how far they will decline; Older plants are due to shut, particularly in Europe, and disruptions from high temperatures and hurricanes in the Atlantic pose risks in the summer; Chevron, TotalEnergies, and Phillips 66 have all reported weaker refining business in their recent earnings; Shell CEO says prices and margins have normalized to pre-2022 levels. #Refineries https://leadership.ng/mini-refineries-risk-closure-over-profit-concerns/