Refining: Robust Winter Product Prices Boost Margins

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Draining product tanks and rising winter demand are boosting refinery margins, providing an incentive to refiners around the world to step up runs — except in China, where the government is clamping down on independent refining capacity. The scramble for products is also boosting light, sweet crude prices. Low-sulfur grades allow simple units with limited upgrade capacity to increase runs. Sweet crude also limits the cost for refiners in Europe and Asia that rely on expensive natural gas to make hydrogen for low-sulfur products.

Refining, Oil Products, Crude Oil, Oil Prices, Oil Inventories
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