Middle East refiners need to rationalize their plans for expanding crude distillation unit (CDU) capacity and consider adding upgrading capacity, according to Sa’d Allah al-Fathi, advisor to Dubai-based Dome International Petroleum.

“They are planning too much distillation capacity,” he tells MEES, “and they need to look at further conversion capacity. The region is still exporting fuel oil, but this is a dying market. Some buyers are re-refining fuel oil bought from the Middle East – regional refiners might as well do this themselves.” (CONTINUED - 617 WORDS)