BP Plc said on Monday, global oil refining capacities need to be rationalized to bring utilization back to historical levels in the face of lagging demand.

There is surplus refining capacity relative to demand. The surplus will be with us for some, said Clive Christison, Director and CEO, Supply & Trading, Integrated Supply & Trading, Global Oil, Eastern Hemisphere of BP.

The bulk of new refinery capacity is likely to be added in the East of Suez region, but some expansions will be deferred or canceled due to poor economics, he told an oil and gas conference in the Malaysian capital.

(Reporting by Jennifer Tan, Writing by Ramthan Hussain)