SAAFY - Another day another bullish refining note from Wall Street

Monday, Goldman laid out the bull case for refining, Tuesday morning JP Morgan forecasted "higher for longer" refining margins, Tuesday night Wells Fargo lifted refiner price targets, and Wednesday morning HSBC doubled refining margin assumptions for 2022 while lifting assumptions 30% for 2023. Tuesday, Saudi's Energy Minister made the case that a lack of refining capacity means high fuel prices are not a problem "any producer can solve." The HSBC note Wednesday indicates that Russian diesel normally accounts for ~50% of European imports, and that dislocation in the market has lifted both diesel and gasoline margins, as European refiners adjust runs to compensate for lost diesel imports. HSBC also notes the recent shift in Chinese refined product exports, as the country has severely curtailed product exports quotas in 2022. Forward curves indicate Q2 will see peak refining margins globally; however, there's no obvious solution to the refining capacity problem, outside

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Another day, another bullish refining note from Wall Street