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Analysts report Asia's oil refining outlook looking up as supply eases. Detailed Discussions at 5th Asia Refining Conference.

Posted on : 29 Sep, 2009

 

Market Watch recently reported that the outlook for Asian oil refiners is now improving on a likely ramp-up in demand and slowing capacity expansion for the industry. This comes after a tough year for Asian refiners, caused by a sharp fall in margins.

 

Market Watch cited comments by Credit Suisse analysts who are saying that the global refining supply growth is “bottoming out”. They wrote, "Absolute demand has bottomed, and a rebound looks imminent."

 

While they argue the magnitude of the bounce-back was "debatable," they added, "Most of Asian capacity growth is in the bag” stating, “capacity growth [excluding Asia] could get delayed or pushed out again, especially if margins fall in [the second half of 2009]."

 

Daishin Securities analyst Jonathan Ahn, wrote in a recent report (that) “The oil refining market is projected to improve in 2010, when the burdens associated with facility expansion will be significantly eased,” echoed similar views.

 

He reported, "The production capacity of for oil refining facilities in the Asia-Pacific region surged to 802,000 barrels a day in 2008 and 1.5 million barrels a day in 2009, causing oil refining market conditions to deteriorate."

 

Ahn adds that capacity will “decrease substantially to 588,000 barrels a day to in 2010 and 846,000 barrels a day in 2011."

 

With Asia’s Refining sector moving towards recovery, attendance at the 5th Asia Refining in Singapore is essential for timely insights on strategizing to ride the wave of recovery!

 

Hear from Asia’s leading refiners and analysts at the conference on 20-21 Oct. 2009. Explore the 5th Asia Refining agenda to see who is speaking!

 

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