Phillips 66 CEO Mark Lashier said in an interview on Wednesday that despite the global refining market seemingly undergoing a period of high profitability, the future outlook remains challenging. He noted that the high profit margins for American refineries are encouraging domestic refiners to continue production, while in other regions, less competitive refineries are gradually shutting down. Lashier expects global refining capacity to potentially decrease by as much as 700,000 barrels per day next year.
"The U.S. has achieved strong competitiveness in the refining industry," Lashier said. "We have the ability to stand firm in the global market."
He also added that while American refineries have a sufficient supply of transportation fuel this year, demand remains stable to weak.
Despite several large new refineries coming into operation globally, which might indicate that the high profitability phase of the refining sector is waning, Lashier remains optimistic about the market's prospects.
