Heavy shale overhauls US refinery to cut fuel output |
WASHINGTON, 18 January (Reuters) – According to data provider IIR Energy and Reuters, USA refiners are planning twice as many refinery overhauls as usual this spring, aiming to restore maintenance that has been delayed by the pandemic and record high margins.
Size of planned outages, Europe Union on February 5 Russia with the entry into force of the ban on the import of petroleum products USA because it increases the demand for its fuels gasoline and diesel supply may tighten and margins increase.
USAAt least 15 of the U.S.’s oil refineries are planning maintenance for two to 11 weeks through May, Reuters and refining intelligence firm IIR Energy show. According to the IIR, US refineries will cut capacity by about 1.4 million barrels per day by mid-February, more than double the five-year average.
John Auers, refining analyst at Refined Fuels Analytics, said, “When margins were strong last year, many factory didn’t want to be closed, but they have to do it,” he said.
Nine US refineries run by Marathon Petroleum, Valero Energy, Exxon Mobil, Phillips 66 and BP will shut down some of their fuel-producing units this spring, according to IIR and Reuters sources.
PBF Energy’s ( PBF.N ) refinery in Toledo, Ohio, has been largely offline since December, according to two people familiar with the matter.
TotalEnergies (TTEF.PA) frosty in late December weather is restarting most of the facilities at the Port Arthur refinery in Texas after several shutdowns due to
THE LETTER IS ALREADY HIGH
Fuel production margins were higher during the outages. Gasoline cracking propagation 26 dollars/barrel, which is 5 from a year ago dollars is high. The margin of heating oil is 58 per barrel dollars which is twice the level of a year ago.
of the United States gasoline inventories were 226.8 million barrels compared to 240.7 million barrels this time last year, and refinery capacity was 8% lower than before Elliott.
“Refiners are going to have a hard time getting into the ranks of a struggling refinery to come back,” said Bob Yawger, director of energy futures at Mizuho.
A new capacity will be available on the market soon. Exxon this month 2 of the Beaumont, Texas refinery billion dollar expansion, Iraq’s Karbala refinery is expected to start up in March, and Kuwait’s second phase of the 615,000 bpd al-Zour refinery is expected to come online. next quarter.
“The start-up of Beaumont and the start-up of other plants around the world in the first half of the year should prevent significant production shortages,” Auers said.
GRAPHIC, US offline refining capacity expected to rise: https://graphics.reuters.com/USA-REFINING/zjvqjedkrpx/
US refinery overhaul this spring, according to IIR Energy data and a Reuters report gasoline and will reduce diesel processing power by more than half the 5-year average. By Laura Sanicola report; Edited by David Gregorio
Our standards: Thomson Reuters Trust Principles.
Laura Sanicola
2023-01-19 08:59:48
Source – reuters
Translation“24 HOURS”