Regional refiners are looking to boost their share of refined products in Asia
An international report said the refining industry in Asia and its counterpart in the Middle East will witness a state of competition and accelerated development efforts in the coming years, especially as many of the Middle East's crude oil producers are seeking strategic partnerships with Asian refineries.
"This gives companies in the Middle East a good opportunity to increase their market share, especially refined products in Asia, through these selected partnerships while allowing a significant outlet for the Middle East," said the report,
The report added that there are many cases where such partnerships are concluded, but at the same time there is continuous competition between refineries of the Middle East and their Asian counterparts, expecting that the market will in the future crystallize strategic alliances in light of the constant competition between refineries from both regions.
The report pointed out that the ongoing challenge facing Asian refineries is to manage profitability in an increasingly complex and volatile environment, pointing out that the refineries are currently witnessing high costs of inputs of crude oil, which causes pressure on the prices of refined products and the presence of excessive In energy consumption.
The report of the International Refinery Association, said that the agreement of the Organization of Petroleum Exporting Countries "OPEC" with partners from outside make the prices of crude oil is moving up at an accelerated pace, especially in the Asian markets because of the shrinking supply of the Organization.
In addition to the pressures of high crude oil prices, there are other pressures on the market, such as excess capacity in products produced by China, India and the Middle East, which means that refineries will be under constant pressure to keep prices low for their products.
According to the report, the Asian refineries benefited greatly from the decline in oil prices in 2015 and 2016, which enabled them to maintain continuity and survive the closure last year because of the lack of production in general in 2017.