Global oil refining fell sharply in March — OPEC
In March, global oil refining volumes fell by 5 million barrels per day to 77.1 million bpd. This marks the sharpest decline since April 2020.
This is stated in OPEC’s monthly report.
The figure was also 4.1 million barrels per day lower than during the same period last year.
The decline is linked to a significant reduction in refining in the region east of Suez due to shifts in oil flows. This exacerbated an existing drop caused by seasonal maintenance, which typically peaks in April, analysts note. In March, refining volumes were 4.8 million bpd below “normal levels,” with 3.2 million bpd attributable to geopolitical factors and 1.6 million bpd to seasonal maintenance.
As a result of the decline in refining, there is a shortage of petroleum products and an increase in refining margins, particularly in the middle distillates segment. At the same time, analysts note that in the Atlantic Basin, primarily in the U.S., refineries are rapidly ramping up production following the completion of maintenance. In March, the increase amounted to 380,000 bpd compared to February, as companies seek to capitalize on high margins. At the same time, most other key refining centers showed a monthly decline.
Looking ahead, seasonal growth in demand for transportation fuel could exacerbate the product shortage, according to OPEC.
OPEC oil exports plummeted to a record low in March, according to Reuters.
As a reminder, oil remains above $100 following the resumption of Iraqi supplies.
Additionally, the price of oil could rise to $200 per barrel due to the war between the U.S. and Iran.
