Refining margins to remain supported through H2 as product supply lags crude flows

AI Summary

Refining margins are expected to remain supported through the second half of the year as product supply lags crude supplies. The Middle Eastern refinery ramp-up and other structural factors contribute to a slower recovery in refined product availability relative to crude oil flows.

Several structural factors underpin this view. 1. Product supply is likely to recover more slowly than crude supply While crude availability is expected to improve over the coming months, refined product supply is likely to respond with a meaningful lag. Several factors support this view: The Middle Eastern refinery ramp-up will take time. Although refining ...