Fuel Glut Keeps Pressure on Refiners’ Profit…WSJ

July 23, 2016 by Jim Colburn Leave a Comment

This, from the WSJ article:

“At today’s benchmark prices, the crack spread, or price difference between crude oil and gasoline, stood recently at between $12 and $13 a barrel.

But while those margins are nothing to sneeze at, last year’s gasoline margins were nearly $17 higher, according to an Energy Management Institute report.”

And, simply put:

““Demand has actually been quite strong. It’s just that supply has exceeded it,” said Mark Broadbent, a research analyst at Wood Mackenzie, a U.K.-based consultancy.”

http://www.wsj.com/articles/fuel-glut-keeps-pressure-on-refiners-profit-1469266204

US gasoline stock levels, from This Week in Petroleum, show a slight rise recently:

Commodity Research Group (CRG), founded by veteran analyst Edward Meir, is an independent research consultancy specializing in base and precious metals, as well energy products. The Group provides research and general price analysis for these markets, along with advice to companies seeking to construct commodity hedging strategies.

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