Refining: Refinery Margins Recover From Lows, With a Twist

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Refinery margins across the globe continue to recover in June after hitting a low in April, as consumer demand is picking up. Crude throughput is also rising, and for the first time since the fall of 2019, preliminary June data pegs crude oil input at just over 83 million barrels per day. Upward revised May runs came already within a hair, at 82.9 million b/d. Part of the recovery is the result of more competitive prices for light and sweet crude in the Atlantic Basin. By contrast, prices for heavier and sour grades have gone up worldwide, which lowers the advantage that complex refineries have over plants with less upgrading capacity.

Refining, Oil Prices, Oil Products, Crude Oil
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