U.S. Oil Glut Sending a Bad Omen to Europe’s Thriving Refiners - Bloomberg Business:
"The biggest crude glut in the U.S. since the 1930s means one thing for European refiners: The highest margins in eight years won’t last.
U.S. plants, ending seasonal maintenance, will push down European prices with rising exports, particularly of diesel and jet fuel, as they eat into a domestic stockpile of almost half a billion barrels of crude. The shipments will help reduce the continent’s third-quarter processing margins by about 42 percent, predicts Wood Mackenzie Ltd.
Europe’s refineries profited this year from slumping oil prices and increased demand from West Africa, Latin America and even the U.S. Their revival will be short-lived. As much as 1.4 million barrels a day of capacity in Europe could be forced to shut by 2020 because of higher cost, according to McKinsey & Co."
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