Moody’s sees another tough refining year

Refiners face another tough year in 2017, predicts Moody’s Investors Service.

Citing forecasts by the US Energy Information Administration, the firm says global demand for gasoline and distillate products will grow only modestly and “will continue to lag the anticipated high available supplies.”

Across North America, Europe, the Middle East, and Africa, the refining industry’s earnings before interest, taxes, depreciation, and amortization (EBITDA) will decline by more than 15% in the next 12-18 months as crack spreads—the differences between crude costs and product values—remain thin, Moody’s predicts in a research note.

“Record gasoline produced from 2015 to mid-2016 amid low crude prices, along with excess inventories, has outpaced gasoline and distillate demand growth from consumers and industrial customers in every major world economy,” the firm says.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now


Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...

Reduce Engineering Project Complexity

Engineering document management presents unique and complex challenges. A solution based in Enter...

Revolutionizing Asset Management in the Electric Power Industry

With the arrival of the Industrial Internet of Things, data is growing and becoming more accessib...