Global volume of refined petroleum products on downtrend

The volume of oil processed in refineries continued to decline in the third quarter, suggesting that demand was a greater concern than supply security despite recent events in the Middle East, said the International Energy Agency (IEA).

“Oil markets in September withstood a textbook case of a large-scale supply disruption as the attacks on Saudi Arabia temporarily affected about 5.7 million barrels per day of crude production capacity,” the IEA said in its latest report.

“On Monday, Sept. 16, the first trading day following the attacks, after an initial spike to $71 per barrel, Brent prices fell back as it became clear that the damage, although serious, would not cause long-lasting disruption to markets,” the Paris-based agency said.

Brent crude oil, which is used in about two-thirds of the world market, is the global benchmark for prices. In Asia, the benchmark is Dubai crude.

The IEA said that, when the report was issued earlier this month, the price of Brent crude was about $58 per barrel, or $2 per barrel below the level before the attack on Saudi Arabia.

During the July-September quarter, global refinery throughput fell year-on-year by 500,000 barrels a day, prompting the IEA to cut its refining growth forecast for the year to just 150,000 barrels per day, the lowest volume in 10 years.