Refinery Margins Remarkable Stable
After bottoming the first week of August, refinery margins have been very resilient, despite the lower gasoline prices at the pump.
With some minor fluctuations, Cushing 5-3-2 cracks have been basically flat at $32/bbl. since the 2nd week of August.
Diesel margins remain high, and as refiner's maximize diesel production, they are oversupplying the gasoline market. That's keeping the trend down on your price at the pump for gasoline, but keeping overall margins up due to the high price of diesel.
I've been saying for a while that 3Q could be the 2nd best refinery earnings on record after this past 2Q results. I'm now working on a model to help predict what the final 3Q numbers could look like.
I'm looking forward to sharing some of the results soon.
Stay tuned 😊