The stock of Royal Dutch Shell plc (ADR) (NYSE:RDS.A) closed at $56.00 losing 1.36% in yesterday’s trading session. This provider has expressed its intention to by the end of this particular month restart its Pernis refinery in Rotterdam. This is expected to help a huge deal towards easing the supply of fuels in the region’s main oil-trading hub.
The refinery was shut down in late July, a matter that has led tighter fuel market in the area. Pernis has been dubbed one of Europe’s biggest diesel machines. Thijs van Velzen,a Shell spokesman opines, “We hope to restart most of our units before the end of August. Shell Pernis is currently restarting a number of units as part of the phased restart of the entire plant.”
Pernis happens to be the biggest refinery in Europe. Its halt has coincided with the strong diesel demand in the area. In Europe, the strength in diesel has been deemed palpable and this was confirmed by a report coming from the Energy Aspects.
As a matter of fact, a shutdown at Pernis bore the potential to cut supply of distillates by an estimated 160,000 barrels a day as it was unveiled by the Energy Aspects. Middle distillates include jet fuel, gasoil and diesel.
There is hope that indeed a restart might end up easing fuel availability. However, Olivier Jakob asserts that the shutdown will continue supporting the distillate fuels over a long period of time. Jakob has been serving as the managing director at researcher Petromatrix GmbH and he made his statement through a phone call on Thursday.
Jakob added that Pernis had been offline for quite some time. This might end up providing some underlying support for distillates in Europe considering the fact that it has led to a reduction in stock.
The refinery has the capacity to process about 404,000 barrels of crude on a daily basis. This refinery will on Friday be making an attempt to restart one of its two crude distillation units as was outlined by someone familiar with the matter.