Europe’s Oil Refineries Struggling to Cope With Diesel Glut
- The pain of the jet fuel market has spread to diesel
- Diesel has weakened even as winter demand period approaches
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The coronavirus is destroying the profitability of Europe’s oil refiners and the industry is hunkering down for a tough winter.
Owners of plants in Finland, France and the Netherlands made announcements in recent weeks that point to the likely closure of facilities in those countries. While that would take out some surplus refining capacity, there’s a more pressing issue: the region’s refineries will operate about 25% below capacity this month, according to IHS Markit. With virus cases surging and diesel trading near its weakest in at least nine years, few are optimistic for a meaningful recovery.