Crude oil almost always needs to be processed (refined) prior to consumption.The process of refining separates crude oil into useable finished products for transportation, residential and commercial heating, power generation, petrochemical production and asphalt formation. It is refining that gives oil its value to end-customers. Marketing refers simply to the distribution and sale of refined products, from bulk distribution to retailing. Integrated oil companies tend to report refining and marketing earnings together.
The refining industry is a global, highly cyclical commodity business in which profitability is sensitive to marginal changes in product supply or demand. Marketing, on the other hand, is more regional in nature, and earnings are more stable. The volatility of refining and marketing, or ‘downstream’ earnings, arises primarily because of the cyclicality of refining margins.
Midor RefineryThe MIDOR refinery produces high quality petroleum products with markets in Egypt, Europa and several Arab and African countries.