According to a new study by Wood Mackenzie, of the 160 refining projects announced since 2005 and scheduled to be operational between the next two to seven years, only 30 are expected to be completed. Nearly all of the projects that are going ahead are funded by national oil companies and will provide 12 million barrels in new capacity. Oil refiners have recently experienced a sudden decline in profit margins as the difference between the price of crude oil and the price of wholesale petrol has shrunk. The new projects also mark a clear shift in oil refining to the East, as two-thirds of the new capacity will be located in Asia and the Middle East. However, projects in these regions are also at risk.

Source: Financial Times

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