Lower margins, elevated product stocks and only marginal capacity growth will result in much slower global throughput growth in the second half of 2016 and into 2017. The deceleration of throughput demand growth in Asia has already begun and will intensify in the 12-month outlook period. Planned capacity cuts in Europe and Japan will moderate the negative impact of these weaker throughput growth on utilization rates and margins in 2017. This slower output growth will place a floor under refining margins, offering some succor in a generally low-margin environment. Meanwhile, higher condensate splitting has implications for crude demand and light distillate yields in 2017.