As downstream companies have already made large investments in refining capacity, including $52B in 2019 to bring online 2.2MM b/d in capacity, the refining industry may now be at overcapacity as demand growth was only at 800K b/d last year. In addition, 6MM b/d in new refining capacity is set to come online in the new five years. Recently, the IEA stated that throughput cuts prompted by the coronavirus pandemic will unlikely match the collapse in demand. In addition, demand for refined products will likely below pre-pandemic levels for years to come
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