Big Oil sees more profit pain as refining safety net slips

The world’s biggest oil companies, supported during crude’s collapse by a buoyant refining business, have lost that buffer as brimming fuel stockpiles swamp demand.

Profits from refining contracted 42 per cent last quarter from a year earlier to an all-time low since 2010. Refineries benefited from oil’s two-year slide that began in mid-2014 because the cost of the feedstock fell while fuel demand rose.

Refining margins are likely to stay “depressed” next year as inventories remain high; making it worse for oil companies crude’s continued weakness.

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http://www.bloomberg.com/news/articles/2016-10-25/big-oil-braces-for-more-profit-pain-as-refining-safety-net-slips

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