S. refiners closed out a sixth consecutive weekly advance on Friday, a run that has added between a third and over 40% to their share prices since early August.
42. While crude oil trades roughly $28 a barrel below where it sat in 2022, diesel just printed record after record.
These companies are pocketing the difference. Over the past six weeks, shares of HF Sinclair and Marathon have both rallied about 43%.
The VanEck Oil Refiners ETF (NYSE:CRAK) has gained 19% over the same period. S.
ultra-low sulfur diesel crack spread, which is the margin a refiner earns turning a barrel of crude into diesel, remains above $100 a barrel, surpassing anything recorded during the 2022 energy crisis. That gap is the entire trade.
The squeeze has tightened since. 901 set Sept.
8. Global distillate inventories were already thin heading into the disruption.
The Margins Are Already In The Numbers Second-quarter results showed the pass-through before this latest leg higher. 58 a year earlier.
Valero’s realized refining margin roughly doubled year over year. The two companies returned more than $5 billion to shareholders through buybacks and dividends in the quarter.
S. diesel refining profits holding near $63 a barrel into 2027, well below today’s record, but still roughly triple a normal mid-cycle margin.
