Series of Oil Refinery Explosions May Cause Oil Refinery Shares to Increase
The recent explosion of oil refinery in Germany is the global third in a month. This may results in a short-term hike of oil refinery shares.
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An explosion occurred on September 1, 2018 in Bayernoil Refinery Complex, Bavaria, Germany, and burnt 120,000 barrel per day per plant out of its 206,000 production capacity per day (almost at the same level of Thai Oil Public Company Limited or TOP). The fire is now under control, but the cause of the explosion is still unclear.
The evacuation was announced to move 1,800 residents off the area, but later returned to their home as the situation was safe. Luckily, there are 8 injured, and yet to report any death.
Switzerland’s Varo Energy holds the majority stake in Bayernoil Refinery at 45%, follow by Russia’s Rosneft at 25%, Italy’s Eni at 20% and Britain’s BP at 10%.
Varo Energy has become a major midstream group across North West Europe, supplying gasoline to local garages and heating oil to Bavarian consumers. Varo Energy is a subsidiary of Vitol, Netherland’s energy and commodities company. One of its business is to supply oil crude worldwide. Vitol can the export capacity of 7 million barrel per day, and its 2017 revenue is 181 billion dollar, or roughly 6 trillion baht.
 
This is the third explosion incident in a month regarding oil refinery plant around the world. The Brazil’s Replan refinery in Paulinia, Sao Paulo was in flame on August 20, and before that is a fire at Mumbai’s refinery plant on August 8.
The series of explosions and fire in a short period of time may cause oil refinery section’s shares to a short-term increase.
 