Skip Navigation LinksMy Argus / News / News Story

Refinery runs to hit historic high: IEA

13 Apr 2017 12:42 (+01:00 GMT)
Refinery runs to hit historic high: IEA

London, 13 April (Argus) — Global refinery runs are forecast to reach a record 82.4mn b/d in July, the IEA said today in its latest Oil Market Report (OMR).

Refinery runs are forecast to rise every month from April-July, pushing second quarter runs up by 1.15mn b/d on the year to 79.9mn b/d.

Among OECD countries, second quarter runs are forecast to rise by 505,000 b/d on the year to 37.6mn b/d. The growth is a bounce back from the 515,000 b/d decline in the second quarter of 2016, largely caused by Canadian wildfires and strikes in France.

In non-OECD countries, second quarter runs are expected to rise by 1.2mn b/d on the year to 42.4mn b/d. China's ascendancy continues, with runs up by 440,000 b/d on the year to around 11.2mn b/d, though the IEA attributes part of this rapid growth to broader coverage of independent refineries.

The stronger global run rates in the second quarter come as latest IEA data show a fall in OECD oil industry product stocks of 20.3mn bl in February compared with the previous month — signalling a reversal of the stock overhang that weighed on run rate growth for much of 2016. This year's spring refinery maintenance was also weighted towards February and March, according to the IEA, allowing a pick-up in runs from the start of the second quarter as processing equipment comes back online. In Europe, refinery maintenance peaked in March, with more than 860,000 b/d of crude and 165,000 b/d of cracking capacity scheduled to go off line.

3760642