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Oil refiners shut plants as demand losses may never return

Oil refiners shut plants as demand losses may never return

Oil refiners are permanently closing processing plants in Asia and North America and facilities in Europe could be next because of the uncertain prospects for a recovery in fuel demand after the coronavirus pandemic cut consumption.

The pandemic initially cut global fuel demand 30% and refiners temporarily idled plants. But consumption has not returned to pre-pandemic levels and lower travel may be here to stay, leading to the possibility plants may shut permanently.

Here are some of the companies/refineries involved:

* Australia has proposed offering incentives worth A$2.3 billion ($1.68 billion) over 10 years to keep the country’s four remaining oil refineries open and said it would invest in building fuel storage as part of a long-term fuel security plan.

The four refiners – BP Plc, Exxon Mobil Corp, Viva Energy Group and Ampol Ltd – all welcomed the proposals but made no commitment to keep their plants open.

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Source: SweetCrudeReports

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