another 150K daily cut in oil production:
04:38 DJS Shell Cuts Singapore Crude Runs To 49% In Slumping Oil Market
04:38 DJS Shell Cuts Singapore Crude Runs To 49% In Slumping Oil Market
SINGAPORE -(Dow Jones)- In a sign of continuing deterioration in the
regional oil-products market, Shell Eastern Petroleum Pte. Ltd., a unit of the
Royal Dutch/Shell Group, said Monday it will reduce crude-oil processing at
its Bukom refinery in Singapore to about 29,000 metric tons a day in
September, or 49.2% of design capacity.
That compares with the Bukom refinery's August operating rate of 42,000
to 43,000 tons a day, or 71.2% to 72.9% of capacity.
A Shell (RD) spokesman said the reduction in crude distillation unit
throughput in September was made "in view of continuing adverse market
conditions."
The refinery, Singapore's largest, is designed to process a maximum of
59,000 tons a day, or roughly 433,000 barrels a day. Shell has been operating
the refinery below capacity for most of the last year because of low refining
margins and a weak export market. September's operating level would be the
lowest during the period.
Among Singapore's other three refiners, Singapore Refining Co. and
Mobil Corp. (MOB) have cut crude runs by 15% to 16%, and traders say Exxon
Corp. (XON) is planning a shutdown of one of its crude distillation units.
Key diesel prices and refining margins have fallen sharply in the past
month. Singapore's simple refining margin for Dubai crude is estimated at
negative $1.90 a barrel.
-Campion Walsh; 65-421-4816; campion.walsh@cor.dowjones.com
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All Rights Reserved.
(:MOB) (:RD) (:SC) (:U.RSH) (:U.SLR) (:XON)
08/31 4:38a CDT
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