"Golden age" of oil refining margins to end

[jpak]

http://africa.reuters.com/business/news/usnBAN956513.html

LONDON (Reuters) - The global "golden age" of record refining profits is likely to be over by the end of the decade thanks to more capacity from new plants and higher costs due to record crude prices, industry analysts say.

Signs the boom is faltering have already emerged. ConocoPhillips suspended production at its German refinery for a month in August due to low margins, an unusually long shutdown in the peak summer driving season.

Chevron Corp, the second-largest oil major in the United States, said earlier in October it would see its third-quarter net income dropping significantly from the second quarter due to a sharp fall in its refining margins.

Some industry experts say this is the beginning of the end of the refining industry's "golden age" which began in 2004 when margins started rising due to global demand growth and the shortfall in refining production capacity.

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