China’s benchmark thermal coal prices have jumped for 11 straight weeks, hitting the highest level in three years this week, amid lower domestic production and reduced imports from top coal exporter Indonesia. The spot thermal coal price at Qinhuangdao, the benchmark for Chinese prices, jumped to 986 yuan, or $147 per ton for the week ending Monday, according to data compiled by Bloomberg. Coal prices in the world’s biggest coal consumer, which still relies on the fuel for nearly 50% of its power generation, have rallied by 24%…
Refining & Products Context
Downstream margins — or crack spreads — have experienced considerable volatility as refinery operators navigate feedstock cost fluctuations, product demand seasonality, and evolving fuel specifications. Gasoline and distillate margins serve as key profitability levers for integrated refiners.
Refinery utilization rates, particularly in the U.S. Gulf Coast and Northwest European hubs, directly influence product availability and pricing. Unplanned outages, scheduled turnarounds, and weather-related disruptions are recurring factors that tighten regional product supply.
What to Watch
Key metrics to watch include refinery utilization rates, weekly distillate inventory builds or draws, and crack spread movements, which serve as real-time indicators of refining profitability across major processing hubs.
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