ME Refineries on Track for Near-Full Recovery by Crisis' End

Middle East oil refineries may see a significant recovery in production levels within 40-60 days from the end of the current supply crisis linked to the closure of the Strait of Hormuz. Vitol Bahrain's regional head of research, Bader Nooruddin, made this prediction at the S&P Global Energy Middle East Petroleum and Gas Conference.

Refineries in the region have lost around 3 million barrels per day of oil refining capacity due to shut-ins, according to Nooruddin. To put that number into perspective, it's roughly a quarter of global oil demand.

Nooruddin did not provide any specific details on how refineries plan to ramp up production or what steps will be taken to mitigate the effects of the crisis. However, his timeline suggests that refineries could recover to around 90-95% of normal production levels within a relatively short period.