Oil Refiners Are Cashing In on a Market That Won’t Stay Broken

AI Summary

Oil refiners are experiencing unprecedented profit margins despite crude oil prices falling to pre-Iran war levels, as gasoline, diesel, and jet fuel prices remain high. Refining margins such as the US 3-2-1 crack spread recently hit record highs, creating a significant windfall.

Oil refiners have stumbled into one of the best profit environments in years. Crude prices have fallen back to where they traded before the Iran war erupted. But gasoline, diesel, and jet fuel remain stubbornly expensive. That combination has pushed refining margins to extraordinary levels, giving refiners a windfall that few expected just weeks after the Strait of Hormuz reopened. The benchmark U.S. 3-2-1 crack spread—a closely watched measure of refining profitability—recently climbed above $60 per barrel, the highest level on record.…