Demand Plummets Due to COVID-19... First Refinery Shutdown in North America Emerges

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] Due to the global decline in oil demand triggered by the spread of the novel coronavirus infection (COVID-19), a refinery in Canada has been temporarily shut down for the first time.

According to Bloomberg News on the 29th (local time), North Atlantic Refining, the only refinery located on Newfoundland Island in Canada, has temporarily closed due to the decrease in oil demand. The closure period is expected to last between two to five months.

This facility is known as one of the assets purchased during the Lee Myung-bak administration's resource diplomacy and incurred losses worth trillions of won upon its sale.

North Atlantic Refining's daily production capacity is 130,000 barrels, mainly supplying Canada and the U.S. East Coast.

The 'shutdown' of refineries has been considered an anticipated step. Earlier this year, international oil prices maintained around $60 per barrel, but due to the impact of COVID-19 and the sharp global demand drop, prices fell to as low as $19.92 during trading on this day.

Bloomberg News reported, "The refinery shutdown is a matter of time due to the global demand plunge caused by COVID-19," adding, "The number of refineries declaring shutdowns will increase like a domino effect."

This content was produced with the assistance of AI translation services.