U.S. refiners have begun to cut crude processing amid a “stubborn” oversupply of fuel, Reuters reports. Columnist John Kemp says the market is struggling to clear out the volumes of gasoline refiners produced from January to June amid favorable pricing. Refiners are now shifting their focus to distillates, which were in low demand during the relatively warm winter. It could take up to two months for gasoline stockpiles to reach normal levels, even though a strong summer driving season is expected.
The unusually high stockpile of gasoline has eaten into refiners’ margins, which are typically robust at this time of year.
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