EU refining industry needs to shrink by 40%: ING

London

THE European oil refining industry would be better off with just 60 plants, a cut of around 40 per cent from today's number, a report from Dutch bank ING said on Monday, but the risk that inefficient refineries will stay open is high, prolonging the pain.

Nearly 22 European refineries have closed since 2009, equivalent to 2.3 million barrels per day (bpd) of capacity, while another 15-20 plants have been sold by oil majors to independent traders or investors, the report said.

But ING argued it would be better for the industry if another 40 plants closed given the high costs of doing business in Europe and growing competition from overs…