Refining margins pummeled
From ISI:
"*Our model for average US gross refining profit margins dropped sharply in the recent week taking the figure about 40% below the corresponding year-ago level and 55% below the peak number posted in mid-May.
*The most recent week's decline in US refining margins stemmed almost entirely from gasoline - cash crude prices were actually up about 30 cents/bbl on the week while gasoline was down $3.55/bbl.
*We expect US refining margins will see further erosion as we move towards September owing primarily to the seasonal switchover refiners make to "winter grade" gasoline and a normal sharp drop-off in gasoline demand after August.
*Foreign refining margins are still showing a pattern suggesting soft demand trends. Both the European and Far East gas cracks have nose-dived.
*Tanker rates for barrels moving from the Persian Gulf posted multi-year lows in the recent week reflecting the impact of displaced OPEC oil owing to higher non-OPEC supply and weaker than expected global oil demand."
"*Our model for average US gross refining profit margins dropped sharply in the recent week taking the figure about 40% below the corresponding year-ago level and 55% below the peak number posted in mid-May.
*The most recent week's decline in US refining margins stemmed almost entirely from gasoline - cash crude prices were actually up about 30 cents/bbl on the week while gasoline was down $3.55/bbl.
*We expect US refining margins will see further erosion as we move towards September owing primarily to the seasonal switchover refiners make to "winter grade" gasoline and a normal sharp drop-off in gasoline demand after August.
*Foreign refining margins are still showing a pattern suggesting soft demand trends. Both the European and Far East gas cracks have nose-dived.
*Tanker rates for barrels moving from the Persian Gulf posted multi-year lows in the recent week reflecting the impact of displaced OPEC oil owing to higher non-OPEC supply and weaker than expected global oil demand."
posted by Never-Limp at 6:25 AM
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