Refining Margins Shrinking
J.P. Morgan (NYSE:JPM) analysts said refining margins across the globe are probably going to shrink starting in April and May, citing the large amount of maintenance needed starting in March.
Maintenance isn't usually done this early in the year, and it caused some to search out the causes of inventories having a higher amount of product taken from it than usual.
The result has been backwardation, which means short-term gas and other related refining products are higher price than the future contracts.
“Refiners are already buying the crude for this rebound, hence the tightening crude spreads,” JPMorgan said. “Tighter crude, weaker products and demand for fuel oil are a recipe for a collapse in refining margins.”
Refining Margins Shrinking
No comments:
Post a Comment