The International Energy Agency (IEA) says that Middle Eastern refiners will add 2.3mn b/d of distillation capacity by the end of 2021, the largest increase of any region globally. In its latest Medium-Term Oil Market Report (MTOMR), the IEA estimates global capacity will rise by 7.7mn b/d, with nearly 30% of the increase slated from the region.

This will take total Middle Eastern processing capacity to 11.6mn b/d by the end of 2021, raising the region’s contribution to global...