Phillips 66 CEO Projects Global Refining Shortage Next Year

Phillips 66, the No. 2 US oil refiner, is planning for a “constructive” refining market next year with a shortage of fuel-making capacity available to meet global demand.

Refining margins are high enough to encourage US refineries to continue running while other less-competitive plants elsewhere in the world shut down, Phillips 66 Chief Executive Officer Mark Lashier said Wednesday in an interview on Bloomberg TV. As much as 700,000 barrels a day of global refining capacity is expected to be taken out of the market next year, he said.