U.S. Refiners’ Latest Earning Shows Strong Profits across Sector
Published On: May 2018 | Category: Energy & Power




U.S. refiners’ latest earning shows strong profits across the sector, as the price of their initial cost – skinny, sweet crude oil getting out of West Texas - has dropped to more than three-year lows. Shares of small-scale independent U.S. refiners which provide less complicated services have increased in the stock market in the first quarter.

The country’s leading refiners have spent billions in constructing units having the ability to turn heavy, sour crude into diesel fuel, gasoline, and other products.

But the American shale revolution uplifted production of crude oil ad reached to a record of 10.5 million barrels per day. It added very light crude’s millions of barrels to the supply mix and as a result, it defeated the global oil market.

The recent trends of full pipelines in West Texas have contributed to surging prices r Midland, Texas, crude WTC-WTM to more than three-year lows. In addition, OPEC production cuts and supply have increased the cost of heavy, sour oil.

On Thursday, Valero Energy Corp (VLO.N), the world's largest independent petroleum refiner reported the results of the first quarter, surpassing profit expectations.

A refinery analyst, Matthew Blair, with Tudor Pickering & Holt said: “To have your major feedstock be in such abundant supply is unequivocally a positive for U.S. refining.” “The benefits of that are going to be unevenly spread through the group.”

According to Thomson Reuters report, Valero, Marathon Petroleum Corp (MPC.N) and Andeavor (ANDV.N), are three of the biggest independent refiners who have had falling earnings revisions throughout the last 30 days compared to other independent refiners.

Valero’s Vice President Gary Simmons said, “Our economic signals are pointing us to maximize light sweet pretty much everywhere we can.”





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