Refining: Rising Demand Tightens Products Market, Lifts Margins

Refiners globally are again struggling to meet rising consumer demand, and fatter margins are signaling to run units across the globe as hard as possible. New capacity is coming on line, especially in the Mideast, but not fast enough to replenish low inventories. Futures markets are responding by sending diesel and jet fuel prices higher, while gasoline is still strong despite the end of the summer driving season in sight. Tightening the market are Europe where July runs were 450,000 barrels per day below that month last year while Russia is exporting fewer products.