The IEA estimates that global refinery throughputs will fall by 2.7mn b/d this year, despite a steady recovery through the second half. But the outlook remains highly uncertain and dependent on the volatile security situation in the Middle East, which could deteriorate further in the weeks ahead.
Crude oil exports from the Middle East have rebounded recently, thanks largely to the ‘Hormuz Shuttle’ system, but refined products exports remain constrained. Damage to refining facilities during the early months of the regional conflict and the closure of Saudi Arabia’s Jazan refinery since late July because of the Houthi threat have contributed to the shortfall (MEES, 31 July). But the bigger obstacle is the shortage of products tankers willing to risk transiting the Strait of Hormuz. (CONTINUED - 1341 WORDS)
