U.S. oil refining capacity this year could decline by the largest amount in nearly a decade as pandemic-related travel curbs and a fire shut several plants, reversing years of small gains.
In June, Thai oil and gas company PTT Pcl said it delayed making a final investment decision to build the ethane cracker, which analysts estimate will cost $5.7 billion.
The unprecedented decline in demand forced producers to make record output cuts and pump hundreds of millions of barrels of oil into storage.
U.S. crude oil production is expected to fall by 600,000 bbl/d in 2020 to 11.63 million bbl/d, the EIA said July 7, a smaller decline than the 670,000 bbl/d it forecast previously.
Mars Sour, the benchmark for sour U.S. Gulf Coast grades, was trading at a $1.05 premium to U.S. crude futures on July 1.
Crude oil inventories also hit another record high on the U.S. Gulf Coast, where the bulk of the nation's refining capacity is located.
The Thai chemical company said it chose the Ohio site for the proposed ethane cracker because it is located in the Marcellus and Utica shale region, the biggest U.S. natural gas shale formation.
Institute questions whether facility will deliver the promised economic impact.
Similar recoveries in fuel consumption are expected at varying rates across the globe as countries gradually emerge from lockdown and are likely to push the oil market into supply deficit in the third quarter.