Singapore refineries starting to cut output amid pandemic pains

Production runs are down 25% from pre-Covid-19 levels; more pain could come, but demand is improving, crude supply easing

Mindy Tan

Published Mon, May 18, 2020 · 09:50 PM

oil

Singapore

REFINERIES in Singapore have started to cut output and bring forward maintenance shutdowns amid plunging demand as the world remains mired in the Covid-19 pandemic and volatility grips the oil market.

Harrison Cheng, associate director at Control Risks noted that one major refinery brought forward maintenance plans by a month from May to April, reportedly because of declining product margins. Another which supplies aviation fuel to several international airports and airlines across Asia has reportedly reduced its operating rate due to poor refining margins.

Production runs are estimated to have dropped to well below 900,000 barrels per day (bpd) in April due to weaker demand in Asia and poor refining margins, pointed out Kang Wu, head of global demand and Asia analytics at S&P Global Platts. This…