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Refining Margins

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Diesel Cracks Hit Record Highs as Middle East and Russian Supply Shocks Tighten Global Fuel Markets
energy1 month ago

Diesel Cracks Hit Record Highs as Middle East and Russian Supply Shocks Tighten Global Fuel Markets

Global diesel markets are experiencing unprecedented tightness, with refining margins reaching record highs due to simultaneous supply disruptions in the Middle East and Russia. The ICE gasoil crack hit $79 per barrel, while U.S. diesel cracks exceeded $100 per barrel, signaling severe immediate supply concerns. These spikes are driven by ongoing conflicts in Iran and Ukraine, which have stifled product exports and damaged refining capacity. Consequently, U.S. average diesel prices reached $5.68 per gallon, the highest since 2022, just 13.9 cents below the all-time record. Analysts warn that the global refining system lacks the slack to absorb these shocks, keeping prices elevated and volatile as seasonal demand rises. Refiners are expected to see doubled profits from this squeeze, while consumers face the most expensive Labor Day weekend on record for fuel costs.

via Crude Oil Prices Today | OilPrice.com|
#diesel-prices#energy#global-supply-chain
Global Diesel Crisis: War-Driven Supply Shocks Push California Prices to $7
energy-and-markets2 months ago

Global Diesel Crisis: War-Driven Supply Shocks Push California Prices to $7

Diesel prices in California have surged to $7 per gallon, up 37% year-over-year, as global supply chains fracture due to conflicts in Europe and the Middle East. Refiners are capturing record profits, with the diesel crack spread hitting an all-time high of $102 per barrel, while consumers face rising costs for goods and transportation. The crisis stems from Russian export bans following Ukrainian drone strikes, disruptions in the Strait of Hormuz, and reduced output from China and the Middle East. Analysts warn that prices may remain elevated through winter as damaged refineries struggle to repair, potentially driving inflation higher.

via CNBC|
#diesel-prices#energy-and-markets#inflation
Exxon and Chevron Post Record Q2 Profits as Trump Orders Probe into Fuel Prices
energy-and-markets2 months ago

Exxon and Chevron Post Record Q2 Profits as Trump Orders Probe into Fuel Prices

ExxonMobil and Chevron reported a combined $26.5 billion in second-quarter profits, driven by record refining margins and production levels amid supply disruptions from the Iran war. While Chevron beat earnings estimates, Exxon missed due to refining volatility. President Trump has ordered a Justice Department investigation into potential price gouging, though the industry warns that export restrictions could worsen the fuel shortage.

via Crude Oil Prices Today | OilPrice.com|
#chevron#energy-and-markets#exxonmobil
Jet Fuel Cracks Leap to Fresh Highs as Hormuz Turbulence Tightens Markets
energy7 months ago

Jet Fuel Cracks Leap to Fresh Highs as Hormuz Turbulence Tightens Markets

Jet fuel cracks to record highs as Iran-related conflict disrupts Strait of Hormuz, tightening supply for Asia and Europe. Singapore jet fuel jumped about 140% to around $230 per barrel, while Europe’s jet premium to crude widened, with cracking margins surging to new records. The stress in jet fuel outpaced crude due to storage constraints and refinery constraints, with roughly 20% of global jet exports passing through Hormuz. If disruptions persist, airlines and consumers could face sustained higher costs and refining runs may stay restrained even if tensions ease.

via Crude Oil Prices Today | OilPrice.com|
#energy#jet-fuel#middle-east-crisis
Shell Reports $6.2 Billion Q3 Profit and $3.5 Billion Share Buyback
business3 years ago

Shell Reports $6.2 Billion Q3 Profit and $3.5 Billion Share Buyback

Shell reported a third-quarter profit of $6.2 billion, benefiting from higher oil prices and refining margins. The profit was in line with estimates but marked a decline from the previous year. The company also announced a $3.5 billion share buyback. Shell's CEO stated that the company delivered strong operational and financial performance, capturing opportunities in volatile commodity markets. Free cash flow fell, while cash capital expenditure rose. Energy majors, including BP and TotalEnergies, have been impacted by soaring fossil fuel prices.

via CNBC|
#business#oil-prices#profit
BP's Profit Plummets 70% but Dividend Gets a Boost
business3 years ago

BP's Profit Plummets 70% but Dividend Gets a Boost

BP's second-quarter profit dropped 70% to $2.6 billion, missing forecasts, due to weak refining margins and oil trading income. However, the energy giant still increased its dividend by 10% and plans to repurchase $1.5 billion of its shares. BP's weaker results were attributed to declining refining margins, higher maintenance activity, and weaker trading results. The company's net cash flow was negative, and its debt-to-capital ratio increased. BP expects oil prices to be supported in the third quarter, but the European gas and Asian LNG markets may be at risk. The company aims to expand its renewables and low-carbon business while reducing oil output by 25% by 2030.

via Reuters|
#bp#business#dividend
Oil Prices React to Mixed Economic Data and Investment News
energy3 years ago

Oil Prices React to Mixed Economic Data and Investment News

U.S. gasoline and diesel inventories are below the five-year average, indicating strong fuel demand and supporting crude oil prices and U.S. refining margins. Despite optimistic views on summer fuel demand, oil prices have fallen due to concerns about the economy and high interest rates. However, the International Energy Agency predicts a tightening market in the second half of the year, with demand expected to exceed supply by almost 2 mb/d. Refining margins have fallen since Q4 2022 but remain higher than historical norms, and U.S. refiners are optimistic about cracks going forward.

via OilPrice.com|
#diesel#energy#fuel-demand