- The refinery market all over the world is doing very badly because such large parts of the demand for, for example, petrol and diesel largely disappeared when several countries shut down their economies to limit the corona pandemic.
According to Samuel Ciszuk, the situation for the refinery industry is exacerbated by the fact that demand for other products made from oil has remained, which has meant that the companies continue to produce at the same rate as usual.
As a result, ever larger stocks of fuel have been built up, which results in even lower prices and poorer profitability.
The recovery is delayed
- There is an imminent risk that some European refineries will have to collapse in order for the market to be able to balance supply and demand, says Samuel Ciszuk.
He believes that there is a risk of delay before economic activity in the world has recovered so much from the corona crisis that the enormous laws of petrol and diesel can begin to be emptied.
And many companies will be forced to make heavy investments at a time when they are bleeding financially.
- It will be a huge challenge.
Preem hopes to survive, not least because they already have some "green" production of biofuels.
It is actually the only part where they make money and that makes them stronger than the competitors on the continent.