-Refinery run rates are rising earlier and faster than usual in the wake of this year’s maintenance season, Reuters reports. Refineries processed an average of 16.2 million barrels per day last week, compared to an average of 14.7 million over the past 10 years — a 9% increase. The wide margin between the prices of domestic crude and refined projects is encouraging refiners to ramp up throughput. The gross margin for turning crude into gasoline is shrinking, however, having decreased to about 56 cents from as much as 70 cents in February.
-Meanwhile, total U.S. petroleum deliveries in March increased to their highest level for that month since 2011, even as rig counts reached a five-year low. Gasoline demand for March reached the highest level for the month in six years.
-Striking workers at Marathon’s Galveston Bay refinery have rejected the company’s final contract offer, claiming it would cost more than 150 jobs and undermine worker safety. Union representatives told the company they are willing to resume contract talks next week. Union workers at LyondellBasell's Houston refinery rejected an offer by the company earlier this week.
-The federal government today issued an emergency order requiring oil-carrying trains to slow down when passing through “high threat” urban areas. Via Fox Business, the order imposes a 40-mph speed limit on trains carrying oil and other flammable liquids such as ethanol through major metropolitan areas. Major freight railroads voluntarily agreed to implement a 40-mph speed limit last year, but that agreement only applied to older tank cars. The emergency order applies to tank cars constructed since 2011 to replace the older cars.
-Husky Energy appointed Jonathan McKenzie CFO, effective April 27. McKenzie previously served as chief commercial officer at Irving Oil and has also worked at Suncor Energy and Crestar Energy.
