Gunvor Group Ltd. expects more European oil refineries to close in the next two to three years amid declining profits, according to David Fyfe, the company’s head of market research and analysis.
“European refiners are going to continue to struggle, particularly with new refining capacity in Asia and the Middle East coming on stream,” Fyfe said today in an interview at the Financial Times Global Commodities Summit in Lausanne, Switzerland.
The energy trader purchased refineries last year in Ingolstadt, Germany, and Antwerp, Belgium, from insolvent refiner Petroplus Holdings AG.
“We’re quite happy that the assets we have are resilient to withstand those headwinds,” he said.
Producers of middle distillate fuels such as diesel, gasoil and jet fuel will probably fare better because of rising demand for those products compared to gasoline, Fyfe said.
“Gasoline in the Atlantic Basin remains troubled,” he said. “The European arena looks the most challenged going forward. It’s going to be tough.”
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