Glut Reduction May Take A While

Glut Reduction May Take A While
Here is a recap of popular Rigzone articles from the past week corresponding to the downstream.

Articles discussing factors weighing on crude oil prices, along with a major decision by a U.S. refiner, ranked among the most popular downstream-related articles on Rigzone during the past week. Read on for details.

What Is the Outlook for Oil Prices?

In Fitch Solutions’ estimation, the outlook is bullish over the short and long terms. As this staff-written article notes, the information services firm attributes the outlook to positive market fundamentals and sustained crude oil and fuel inventory drawdowns. Fitch Solutions also projects the drawdown in “‘extremely bloated’” stockpiles will occur over the next two years.

Phillips 66 to Stop Refining Crude at Calif. Facility

Big changes are in store at Phillips 66’s oil refinery in Rodeo, Calif. The company recently revealed that it will reconfigure its San Francisco Refinery into the world’s largest renewable fuels plant. It stated the project, coupled with a project already under development, will lead to a complex capable of producing more than 800 million gallons per year of renewable fuels. Feedstocks for the biofuels plant will include used cooking oil, fats, greases and soybean oils.

How Would a 2nd Lockdown Affect Oil Prices?

That is a question many in the oil market are likely asking. This staff-written article outlines such a scenario as envisioned by a researcher with consultancy Wood Mackenzie. In the WoodMac researcher’s view, a major second-wave lockdown would delay a rebound in gross domestic product until 2022. The article adds that another consulting firm, Rystad Energy, has projected that a second lockdown could weaken oil demand on the order of 2.5 million barrels per day.

To contact the author, email mveazey@rigzone.com.



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