Oil refiners in Asia, Europe, and the United States are facing a drop in profitability as new refineries come online, leading to oversupply and weak demand. The slowdown in global demand, particularly in China, coupled with the rising penetration of electric vehicles, has contributed to the decline in profitability. Refiners that had previously enjoyed surging returns post-pandemic are now experiencing multi-year lows in profitability. The weak Chinese economy, along with soft fuel demand and export margins, has led to a decrease in industrial output growth and oil refinery output. The oversupply in the global diesel market is also a major factor in the margin weakness.