The global refining industry is witnessing a slump following the global economic downturn after a high return period in the past few years.
Online PR News – 03-December-2009 – – The global refining industry is witnessing a slump following the global economic downturn after a high return period in the past few years. Uncertain product demand due to the global economic downturn, decreasing refinery margins and a surplus refining capacity are having a combined negative effect on the profitability of refining operations. Due to this, major integrated oil companies with significant refining operations have seen a decline in their revenues from the previous year. These trends will continue to cast a shadow of uncertainty over the future of refinery margins thereby compelling integrated companies to divest their non-profitable assets to fund other businesses.
The global refining industry witnessed a major change in market dynamics in 2008. The refining industry during the period from 2003 to mid 2008 has changed from a low return industry to a high return industry. The surge in petroleum product demand in this period, especially in developing nations, lack of refining capacity and relatively high crude oil prices were the reasons for its turnaround. The trend continued through the first half of 2008 but the economic slowdown has severely impacted the refining sector since then.
This analysis was taken from a research paper published by GlobalData, to download the full Research Paper for free, click below:
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