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


Logistics Risk Management in the Transformer Industry

Transformers often are shipped thousands of miles, involving multiple handoffs,and more than a do...

Secrets of Barco UniSee Mount Revealed

Last year Barco introduced UniSee, a revolutionary large-scale visualization platform designed to...

The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...