Global and U.S. refining margins have improved significantly since reaching lows in February, according to an analysis by Reuters columnist John Kemp. Crack spreads and indicators released by refining companies all point to margin improvement, which has helped keep oil prices stable, Kemp writes.
Valero recently reported margins for its Gulf Coast refineries improved from $11.50 per barrel in February to over $17 in April. Margins for its midcontinent refineries are up from $8 in February to $11 in April[ and margins for its Atlantic coast refineries grew from $9 to $14.
Meanwhile, Kemp reports, the 3-2-1 crack spread has improved from $12 to $18, and there have been similar improvements in the 5-3-2 and 2-1-1 crack spreads.
It remains to be seen how the improvement in refining margins will affect maintenance plans. Last year record margins drove some owners to delay maintenance until this year.
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