OPEC stated in its monthly oil market report: “Considering that the current refined oil market has oversupplied, especially middle distillates, the decline in demand from the industrial sector and the use of low-priced natural gas as a substitute have infiltrated into fuel oil and heating oil applications. In the field, therefore, the utilization rate of global refining capacity cannot be significantly increased in the coming months."
Excess supply of refined oil will put pressure on recent crude oil prices.
In November, the US refinery's capacity utilization rate was about 80%, but the continued increase in gasoline inventories may further compel the US's refining capacity utilization rate to decline. The European gasoline market may also be further pressured by higher gasoline stocks in Rotterdam and a reduction in export arbitrage opportunities to the United States.
Excess supply of refined oil will limit the global refinery operating rate
According to Dow Jones News, London, December 16, OPEC forecast on Tuesday that the oversupply of refined oil is expected to limit global refining activities in the coming months.