Refining faces extended Covid effect
A partial recovery is unlikely to segue into a strong year to come
The refining industry is far from out of the woods going into 2021, even though demand has rebounded from the lows of the second quarter of 2020. The oversupply that has accrued will continue to expedite a global trend of refinery closures and rationalisations already announced during 2020. But China will be a notable exception. The windfall on which refiners were counting from a rise in low sulphur marine fuel demand following IMO 2020 failed to materialise as Covid-19 overtook events. Global oil demand registered its largest decline this century, plunging by 20-25mn bl/d at the pandemic’s peak. Refining margins tumbled as the oil surplus ballooned, sending combined crude and refined produc
Also in this section
12 December 2025
The federal government is working with Alberta to improve the country’s access to Asian markets and reduce dependence on the US, but there are challenges to their plans
12 December 2025
The latest edition of our annual Outlook publication, titled 'The shape of energy to come: Creating unique pathways and managing shifting alliances', is available now
11 December 2025
The removal of the ban on oil and gas exploration and an overhaul of the system sends all the right messages for energy security, affordability and sustainability
10 December 2025
The economic and environmental cost of the seven-year exploration ban will be felt long after its removal
