A Refinery Crisis Is Brewing In Oil Markets

The ongoing energy transition combined with the effects of Covid-19 will drive future oil demand to lower levels than what was expected just months ago. As a result, a plethora of planned refinery additions will far exceed closures towards 2025, and utilization rates will likely never recover to pre-pandemic levels unless some capacity closes early, a Rystad Energy market analysis reveals. New and expanding projects from the beginning of 2020 and up until the end of 2025 are estimated to add about 13 million bpd of global capacity as Asian and…