We’ve been tracking refinery margins for a while, and there’s always an interplay between the input costs (i.e., crude prices) and product prices (i.e., gasoline, diesel, jet fuel, etc.). Refiners make the difference between the two and in complex refineries, can dial up or down the production of certain products. So while difficult to pinpoint exactly, it’s helpful to understand what is broadly happening.
In the past month, the coronavirus has severely impacted the crude market and driven it into bear territory on fears of demand destruction. The prevailing narrative is that the Chinese economy