(Bloomberg) -- Phillips 66, the No. 2 US oil refiner, is planning for a “constructive” refining market next year with a shortage of fuel-making capacity available to meet global demand.
Refining margins are high enough to encourage US refineries to continue running while other less-competitive plants elsewhere in the world shut down, Phillips 66 Chief Executive Officer Mark Lashier said Wednesday in an interview on Bloomberg TV. As much as 700,000 barrels a day of global refining capacity is expected to be taken out of the market next year, he said.
“The US has become very competitive in refining,” Lashier said. “We’re able to compete out in the world global markets.”
Meanwhile, the US market has seen strong transportation-fuel supplies this year from refiners paired with demand that has been flat to weak, Lashier said.
Lashier’s projections come despite several new, large facilities that have opened around the world and have signaled the golden period of profits could be fading for refiners.
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