According to Bloomberg sources, a German refinery will cut off deliveries of diesel, the lifeblood of the economy, and heating oil to customers starting tomorrow. A big problem because this is only the latest of several interruptions.
German refinery Bayernoil GmbH said it will halt deliveries for several days after the plant was struck by lightning and was damaged . The EU is already facing several refinery outages this month, including the Austrian OMV refinery in Schwechat, the British refinery in Fawley, the French refinery in Donges and the Romanian Rompetrol. The OMV refinery in Burghausen will also be undergoing maintenance this summer.
The Schwechat refinery outage had already caused tanker queues at the Bayernoil refinery in the past two days. Now this source too has unexpectedly become unavailable. The two lightning-struck plants are capable of processing 200,000 bpd of crude oil, according to Bloomberg data.
Prices were already skyrocketing due to the scarcity of fine products and now it can only get worse. Reserve refining capacity for distillate production is shrinking due to the continued recovery of demand in the post-pandemic world, and refining capacity in Europe and the United States has declined over the past decade.
The only way out of the diesel crisis would be a slowdown in demand, thanks to the application of much higher prices, the famous destruction of demand. Another solution could be an increase in refining activity, but it is not simple. The Bayernoil GmbH lightning bolt and other refinery outages reduce the likelihood of the latter hypothesis, at least in the near future. Prior to the Russian invasion of Ukraine, supplies from Moscow accounted for 15% of Europe's total diesel consumption.
The article A bolt of lightning risks leaving Germany without diesel !! comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/un-fulmine-rischia-di-lasciare-la-germania-senza-gasolio/ on Fri, 01 Jul 2022 06:00:08 +0000.