Refiners cut oil use, show world has enough for now

LONDON/NEW YORK (Reuters) – Oil around $90 a barrel for three straight months has led refiners around the globe to process less of it, offering further proof the world’s immediate needs for crude are amply covered.

A Reuters estimate shows at least 400,000 barrels per day (bpd) is off line as refiners close units that process crude — allowing oil inventories to pile up as refined product prices lag crude’s rally.

The refinery “run cuts” reinforce the view there is plenty of crude available for now, although consumer countries threatened with recession, led by the United States, are urging OPEC ministers who are meeting on February 1 to decide to pump more.

…The Reuters estimate is based on a tally of reported production losses and, in some cases, estimates of a 10 percent reduction in average crude runs where no indications are available on the scale of cut.

Reuters