Changing crude oil price differentials contribute to global convergence of refining profits (8/24/2016)

Refinery earnings were lower in second-quarter 2016 compared with the same time last year and are converging among different locations globally. Lower crack spreads (the price difference between crude oil and petroleum products) contributed to declining profits for some refiners compared with 2015. Also, North American refiners—which for years were consistently more profitable than other refiners—were less profitable than European refiners for the second consecutive quarter. Changes in North American and European crude oil price differentials are likely contributing to the convergence in profits. ... More »