• 4 minutes Is $60/Bbl WTI still considered a break even for Shale Oil
  • 7 minutes Oil Price Editorial: Beware Of Saudi Oil Tanker Sabotage Stories
  • 11 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 15 minutes Wonders of Shale- Gas,bringing investments and jobs to the US
  • 9 hours IMO 2020 could create fierce competition for scarce water resources
  • 4 hours Evil Awakens: Fascist Symbols And Rhetoric On Rise In Italian EU Vote
  • 21 hours India After Elections: Economy And Hindu Are The First Modi’s Challenges
  • 18 hours IMO2020 To scrub or not to scrub
  • 8 hours Apartheid Is Still There: Post-apartheid South Africa Is World’s Most Unequal Country
  • 15 hours Theresa May to Step Down
  • 8 hours Total nonsense in climate debate
  • 22 hours Old - New Kim: Nuclear Negotiations With U. S. Will Never Resume Unless Washington Changes Its Position
  • 18 hours Devastating Sanctions: Iran and Venezuela hurting
  • 10 hours IRAN makes threats, rattles sabre . . . . U.S. makes threats, rattles sabre . . . . IRAQ steps up and plays the mediator. THIS ALLOWS BOTH SIDES TO "SAVE FACE". Then serious negotiations start.
  • 227 days Epic Fail as Solar Crashes and Wind Refuses to Blow
  • 20 hours Compensation For A Trade War: Argentina’s Financial Crisis Creates An Opportunity For China
  • 16 hours Level-Headed Analysis of the Future of U.S. Shale Oil Industry

Europe’s Largest Oil Refinery Shuttered For Weeks

Refinery

A Royal Dutch Shell refinery in Rotterdam will remain closed until mid-August after a fire at the facility’s electricity stations caused it to shut down over the weekend, according to the owner company.

The Pernis refinery will become functional again “at the earliest in the second half of August,” according to a recent statement.

Pernis refines 400,000 barrels per day of oil, making it Europe’s largest refinery. The financial impact of the temporary closure is sure to be sizable, though Shell has not released any figures as of yet.

“We are doing everything we can to minimize impact to our customers,” the company said. Earlier, a Shell spokesperson told AFP that all units of the refinery had to be shut down because they are all interconnected. The effects of the outage spread to other areas soon after the short circuit.

European diesel prices surged following Shell’s announcement of the closure, according to Bloomberg. French Total’s Leuna refinery in Germany has also seen limited output in recent weeks, leaving stations in the Leipzig area without fuel. In Greece, last week Hellenic Petroleum declared force majeure on its 100,000-bpd Elefsina refinery, suspending diesel exports.

Diesel in storage fell counter-seasonally in July as well, meaning the Pernis incident accelerates the “pace of the tightening” of the European diesel market, Petromatrix GmbH Managing Director Olivier Jakob told Bloomberg over the phone.

Last week, Shell announced a triple increase in net earnings attributable to shareholders for the second quarter of the year, to $3.6 billion. The results were attributed to higher oil prices that pushed up oil product prices as well, and to cost efficiency improvements. Downstream earnings improved by 39 percent to $2.5 billion, but the bulk of this improvement came from chemicals production rather than fuels.

By Zainab Calcuttawala for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News