Despite seemingly unattractive crack spreads, refinery runs did post a steep rebound in the latest week, however, as West Coast and East Coast refining operations continued to recover from earlier unplanned outages and new capacity came on stream in the Gulf Coast. It has also helped that U.S. refineries in the Mid-Continent enjoy relatively low priced crude oil feedstock and exceptionally low natural gas prices, reducing their operating costs (which are largely driven by energy consumed in the refining process), thus padding their profit margins. With refinery inputs rising seasonally, product inventories, barring any further disruption in supply, seem likely to make up for lost time and may start rebuilding at a brisk pace, as sluggish demand growth compounds the effect of recovering production. Current indications point to a comfortable supply-demand balance in product markets through the summer, and a possibly challenging environment for margins.
A turning point for U.S. oil inventories?
- Dairy markets: Today's milk already sold
- Crop futures diverged from livestock markets Wednesday night
- AGCO releases Challenger MT500E series tractors with 185-255 hp
- Wednesday's CME Dairy Market Recap
- DHM Numbers: September Class I base slightly lower
- Tumbling livestock quotes led ag commodites lower Wednesday
- Commentary: The worst meat to eat
- 72-stall robotic rotary breaks ground in Wisconsin
- 2015 milk prices now looking more like 2013, 2011
- Minn. farm wins court case, power companies to buy 138 acres
- Jersey Island chooses direction 6 years after 250-year import ban
- Drones on the farm: What are the laws?