U.S. refineries are producing the most gasoline and diesel since before the pandemic lockdowns, refining margins are running at record highs, but the world is still short on fuels. And it would take a while—and maybe a peace deal in the Middle East—before the situation changes. Fuel shortages are the more important oil crisis because it is fuels that the world consumes, not unrefined crude oil.
Yet ever since the U.S. and Israel launched their first strikes on Iran at the end of February, it is crude oil prices that have been hogging…
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.
Read original article at OilPrice.com