Global oil refiners such as Abu Dhabi Refinery and others plan to reduce fuel production affected by low demand and high oil prices due to the outbreak of Covid-19, media reports said.
It is reported that industry experts, refinery workers and executives have said that the refiners will take some time to recover from the effects of the pandemic and currently the global oil refiners will produce limited oil from autumn.
The pandemic has forced the oil refineries to reduce oil production by 35 percent in spring as lockdown has halted global travel. Some oil refiners boosted oil production in late August as lockdown eased but refiners in the US and other majors have reduced oil prices due to a surge in inventories caused by low oil demand and to mitigate natural disasters.
China, the second-largest fuel consumer has been walloped the most by the pandemic. The country led the global oil recovery process but oil exports have been bleak due to the virus’s effect on fuel demand in other Asian nations.
The slow recovery among oil refiners has also compelled the Paris-based International Energy Agency to cut its forecast for global oil demand for this year.
According to the forecast, the daily average consumption for petroleum and liquid fuels will be 91.7 million barrels the rest of the year.