Israeli Refiners Continue To Max Runs Despite Slim Margins

Israel’s two refiners Paz and Bazan kept runs at near record levels in the first half of 2016 despite falling margins.

Total output from the two plants – which have a combined capacity of 296,000 b/d – was 293,600 b/d in Q1 and 291,400 in Q2. For the first half as a whole output was 292,500 b/d, almost bang in line with 2015 numbers. The output data indicate that the plants collectively continue to run at around 95% of capacity as they have done since late 2013 (see table).

Paz, operator of a 100,000 b/d refinery situated in Ashdod on the south west coast, says in its Q2 results that its first half 2016 profits were squeezed by low refined products prices – which it attributed to high inventories – at a time of rising crude oil prices. The company reports net sales of NIS5.15bn ($1.37bn) in H1 2016, down 24% from NIS6.80bn ($1.81bn) in H1 2015. (CONTINUED - 442 WORDS)


table Israel Oil Supply And Demand ('000 B/D)