From Bloomberg via Rigzone:
- per-share profit gains from 48% to 154% among top five refiners
- Phillips 66
- Valero Energy
- Marathon Petroleum
- Andeavor (formerly Tesoro)
- HollyFrontier
- crack spread is the reason; from the linked article:
Gasoline prices in the U.S. surged to the highest level in more than two
years and distributors tapped storage tanks to keep deliveries flowing
to filling stations. The crack spread, a rough measure of how profitable
it is to process crude into fuels, jumped to $27.35 a barrel on Sept.
1, compared with $18.64 the day before Harvey’s landfall.
Bloomberg wrote the following, not me (don't blame me for this; again, this is from
Bloomberg, and, if it's from
Bloomberg, it must be true):
Still, one sticking point remains for some oil processors: federal
biofuel mandates. Refiners are required to add ethanol and biodiesel to
gasoline and diesel to satisfy annual quotas. Those that can’t blend the
biofuels themselves must purchase credits known as renewable
identification numbers, or RINs. Acquiring RINs can exact millions in
extra costs for refiners.
The promise of relief for refiners faded when
President Donald Trump was said to have directed the Environmental
Protection Agency not to weaken the mandate.
“RINs remain a mystery,” Brad Heffern, an analyst at RBC Capital
Markets LLC, said in a research note. “Optimism on RINs has faded, but
there are both potential negatives and potential positives on the
horizon.”’
If
Bloomberg says this ...
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.