An Extra Bucket of Cold Water - The Convent Refinery Shutdown Is More Meaningful Than It Seems

Members of our Short-Term Outlook can read the detailed analysis: READ THE FULL REPORT


When considering investment, revenues and profit margins, the refining industry has always been in the shadow of the upstream sector, so when a large and integrated company needs to make adjustments based on financial needs, some refining assets will typically be flagged as potential items for sale.

The Atlantic Basin has experienced refining rationalizations during the last couple of decades, with a few exceptions, because of the maturity of the European market with declining gasoline consumption, underpinned by vehicle efficiency gains and penetration of alternative fuels, among others. The USGC region, however, had been protected from these trends, thanks to its unique integration with both upstream and midstream infrastructure – and access to export markets.

This decision will have a negative effect on any other announcement of refining assets for sale in this marker environment.


Members of our Short-Term Outlook can read the detailed analysis: READ THE FULL REPORT 


This weekly report is an excerpt from our Short-Term Outlook service analysis, which covers a period of eight quarters and provides monthly forecasts for crude oil, natural gas, NGL, refined products, base petrochemicals and biofuels.  Contact Jaime Brito (+1.713-377-0706 or E-mail) for the detailed analysis or for more information about the Short Term Outlook.
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