Scheduled maintenance at European refineries will create a shortage of around 900,000 barrels of refining capacity per day in the continent in April 2008, at a time when diesel supplies are low, according to a Reuters survey.
The survey observed that the refining capacity deficit of 900,000 barrels per day (bpd) in April 2008 is lower compared to April 2007, when almost one million bpd was offline.
Reuters reported that Europe’s low-yield high-value middle distillate refineries are shutting down capacity in a bid to contain losses as their margins come under increasing pressure. These refineries are reported to have worked with margins of less than $1 per barrel for the early part of 2008.
Gasoline production is expected to be hit as naptha reformers are being shut down by several European refineries. The fall in gasoline volumes could potentially affect European fuel exports, according to the news source.