OIL - Global Refinery Run Cuts Are Coming As Crude Quality Issues Worsen
Welcome to the forced cut edition of Oil Markets Daily!
Global refineries are starting to feel the pinch with the global crude quality issue worsening. Coking margins are getting absolutely hammered as the oil market faces a shortage of heavy sour crude.
On the other end, a surplus of gasoline resulting from supply growth from U.S. shale has also destroyed gasoline crack spreads.
In essence, the only thing that's keeping overall crack spreads from falling apart is the elevated heating oil crack spread. But with coking margins falling so low and not expected to recover