Wednesday, September 30, 2009

Refining margins are really low


From Platts (2009 September 29) , quoting Verleger:

"Verleger points to a weakening 3:2:1 crack spread on the NYMEX, which settled at $2.28/b on September 25, the 69th smallest of 1,239 observations dating back to January 1986. "[I]t is in the fifth percentile...This is bad, very bad," he said.

Verleger cites not only poor product demand but mounting global inventories of distillate and gasoline."

If the refiners cannot make any money refining, who will buy all the oil?

You can play with the data shown above at Bloomberg

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