• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 2 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 1 day Does Toyota Know Something That We Don’t?
  • 4 days OPINION: Putin’s Genocidal Myth A scholarly treatise on the thousands of years of Ukrainian history. RCW
  • 1 day World could get rid of Putin and Russia but nobody is bold enough
  • 4 hours America should go after China but it should be done in a wise way.
  • 4 days CHINA Economy IMPLODING - Fastest Price Fall in 14 Years & Stock Market Crashes to 5 Year Low
  • 3 days China is using Chinese Names of Cities on their Border with Russia.
  • 4 days Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 3 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 4 days Putin and Xi Bet on the Global South
  • 4 days "(Another) Putin Critic 'Falls' Out Of Window, Dies"
  • 5 days United States LNG Exports Reach Third Place
  • 5 days Biden's $2 trillion Plan for Insfrastructure and Jobs
  • 9 days huge-deposit-of-natural-hydrogen-gas-detected-deep-in-albanian-mine

Breaking News:

Chicago Files Suit Against Big Oil

U.S. Refiners Expect High Margins In 2023

The biggest U.S. refiners expect refining margins to remain strong this year and into 2024, on the back of the EU ban on seaborne imports of Russian fuel and a rebound in Chinese demand, executives said on the earnings calls this week.    

The EU will ban—effective February 5—seaborne imports of Russian refined oil products and around 1 million barrels per day (bpd) of Russian diesel, naphtha, and other fuels need to find a home elsewhere if Moscow wants to continue getting money for those products.  

“Uncertainties remain around the pace and impact of China's recovery, the magnitude of a potential US or global recession, and the impact of Russian product sanctions. But despite these unknowns, we believe that the current supply constraints and growing demand will support strong refining margins in '23,” Marathon Petroleum’s CEO Mike Hennigan said on Tuesday.

“Given the dynamic nature of the situation in Russia, that supply assurance component is really a big unknown, but we feel well -- very well positioned to take advantage of that, given our position in the Atlantic basin,” said Brian Partee, Senior Vice President, Global Clean Products Value Chain.

ExxonMobil’s CEO Darren Woods said that “If demand picks up, economies continue to grow, we're going to see that tightness manifest itself in continued high refining margins, which I think will mean fairly high margins this year and potentially going into 2024 as well.”

The EU sanctions on Russian fuel imports are bullish for U.S. refining margins, although the timeline for the bullishness will likely be beyond the second quarter, due to Europe stocking up on diesel ahead of the ban, said Marathon Petroleum’s Partee.

“We're entering the sanction period of time at really historically high levels of inventory, particularly in Europe. So, we view it as 2Q and beyond timeline perspective. But, directionally, we see it as bullish for cracks.”   

By Tsvetana Paraskova for Oilprice.com

ADVERTISEMENT

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News