Despite oil price slump, global refiners are turning in strong first-quarter earnings, thanks to a sharp rebound in profit margins, Reuters reports, with U.S. Gulf Coast refiners processing Mars crude enjoying a doubling of margins to some $16 per barrel, $7 margins in Singapore for Dubai crude, and a 36% margin jump in Asia for Arab Light crude.
All in all, we’re looking at refining margins for the first-quarter of this year that are better than 2024, even as upstream margins weaken and the industry at large expresses concern over a cooling global oil demand outlook.
For now, we are witnessing cheap crude and stable demand for gasoline, diesel and jet fuel, which is, in turn, allowing refiners to profit from the widening crack spreads. In other words, refiners are minting money on the crack spread.
So far for the quarter, we’ve seen a mixed bag, despite the overall boost for refiners.
Marathon Petroleum posted a Q1 loss, citing weaker-than-expected margins, seasonal maintenance, and unplanned downtime as key drags on performance. Conversely, Chevron’s refining unit outperformed, helping the company meet analysts’ expectations despite a soft crude price deck.
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Source: Oil & Gas 360
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