• 2 minutes U.S. Presidential Elections Status - Electoral Votes
  • 5 minutes “Cushing Oil Inventories Are Soaring Again” By Tsvetana Paraskova
  • 7 minutes United States LNG Exports Reach Third Place
  • 5 hours Joe Biden's Presidency
  • 11 mins China sends warplanes thru Taiwan airspace. Joe's reponse . . . .
  • 2 hours Biden suspends oil and gas drilling on Federal Lands for 60 days for review.
  • 14 hours Navalny Poisoning Weakens Russo German Relations
  • 9 hours The World Economic Forum & Davos - Setting the agenda on fossil fuels, global regulations, etc.
  • 14 hours So Is COVID a Media Hoax or Not?
  • 5 hours Will Empire be brazen about stealing OIL from Venezuela?
  • 1 hour Minerals, Mining and Industrial Ecology
  • 22 hours JACK MA versus Xi Jinping
  • 1 day GENERAL NORMAN SCHWARZKOPF: The Third Tour
  • 1 day Thanks to food countersanctiona after 2014 Russia become net exporter of food
  • 21 hours a In 2020, we produced and delivered half a million cars.
  • 1 day Parler’s New Partner Has Ties to the Russian Government
Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

U.S. Refiners Brace For Ugliest Losses In A Decade

Due to the demand crash in the lockdown, the seven largest independent oil refiners in the United States are expected to report losses for the second quarter that would be the worst Q2 quarterly figures in the refining industry in a decade, Reuters estimates of analyst forecasts show.

The earnings reporting season for U.S. refiners begins on Thursday, with Valero Energy expected to report a loss per share of $1.41, versus earnings per share of $1.51 for the second quarter of 2019, according to IBES data from Refinitiv.

For the first quarter, Valero had already reported a net loss of $1.9 billion, compared to a profit for the same period last year, after it took a $2-billion hit in the value of its inventory.

“It’s been a very challenging start to the year with significant impacts to families, communities and businesses world-wide brought on by the COVID-19 pandemic,” Joe Gorder, Valero’s chairman and CEO said, commenting on the Q1 results.

According to analyst expectations, the Q2 figures could be equally dismal, not only for Valero but for the other top independent refiners. In the second quarter, oil demand crashed as most of the United States was under lockdown with people staying home or not traveling far.

As a result, inventory of refined oil products was rising, and so was the U.S. commercial crude oil stockpile. Refiners drastically cut crude oil inputs and processing rates in April and May, and refining margins were bleak.

Some refiners idled refineries as demand was very weak. Marathon Petroleum, for instance, idled its Martinez refinery in California. Refiners with more exposure to California and the West Coast are facing very weak refining margins because of the resurgence of coronavirus cases in California, analysts told Reuters.

Overall, crude oil inputs at American refiners are still down 16.6 percent from year-ago levels, at 14.206 million bpd for the week to July 17, as per EIA data. Refinery utilization was at 77.9 percent for the week to July 17, compared to 93.1 percent for the same week last year.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News