Oil refining is set to sky rocket globally for 2019 and is currently increasing at its fastest pace on record for this year.
This type of growth also brings with it the possibility of stock value increase for other refining products such as diesel, gasoline, and marine fuel.
But, just how high is it expected to go?
The International Energy Agency (IEA) expects it to rise by 2.6 million barrels per day and thus increase the expected demand for refined products by roughly 1.1 million barrels per day.
So, what can companies expect in regard to margins?
That answer isn't so clear, just yet, according to the IEA. Experts say that if refining margins are supported by accommodating crude prices, then utilization rates should not decline. That should result in increased stock values.
These same margins continue to remain under pressure from the rising oil throughput, which by the way reached a historic high last month sitting at 84.2 million barrels per day.
That means that refineries are expected to process 83.4 million barrels this year alone. That's over a million more barrels than last year according to the IEA.
The IEA forecasts a challenging 2019 for the refining industry due to crude prices continuing to move higher for the third consecutive year. This is expected to further shrink refining margins which could force a bit of a slowdown in some refining regions.