{"id":6958,"date":"2020-09-11T17:08:21","date_gmt":"2020-09-11T21:08:21","guid":{"rendered":"https:\/\/www.fundamentalanalytics.com\/?p=6958"},"modified":"2021-04-25T22:01:05","modified_gmt":"2021-04-26T02:01:05","slug":"refiners-margins-are-at-historic-and-painful-lows","status":"publish","type":"post","link":"https:\/\/www.fundamentalanalytics.com\/ar\/refiners-margins-are-at-historic-and-painful-lows\/","title":{"rendered":"Refiners\u2019 Margins are at Historic and Painful Lows"},"content":{"rendered":"

Refiners\u2019 Margins are at Historic and Painful Lows<\/strong><\/h3>\n

September 11, 2020<\/p>\n

As one measure of refineries\u2019 profitability is the profit margin (\u201cCrack Spread\u201d), the difference between the price of a refined product and the price of the underlying crude oil.\u00a0 For example, the first chart below is the difference between the December Heating Oil (ULSD) price and the December WTI Crude Oil price.\u00a0 The current December Crack spread (black line) has been declining since January and is currently below $10.\u00a0 We need to go back to the 2009 recession to observe lower Heating Oil crack spreads.<\/p>\n

Comparing the December Heating Oil crack spread with the December RBOB Gasoline crack spread (the second chart below), we observe that the Gasoline crack was even negative mid-March when the US health authorities announced the COVID-19 lockdown.\u00a0 It has been recovering, but still at historically low levels<\/p>\n

The charts below can be constructed in the Fundamental Analytics<\/strong> platform under Prices > Instruments and Spreads > ULSD NY Harbor, RBOB Gasoline.<\/strong><\/p>\n

\"\" \"\"<\/p>\n

\n

If you would like access to the great insights and analysis provided by the Fundamental Analytics platform, sign up for a 15-day free trial<\/strong> <\/a> and demonstration!<\/strong><\/a><\/p>\n

If you have any questions, please contact our Managing Director, Joel Fingerman, at victor.botros@fundamentalanalytics.com<\/span><\/a><\/p>\n

We also invite you to read our other articles and follow us on social media!<\/p>\n

Best Regards,<\/p>\n

The Fundamental Analytics Team<\/p>\n

The information provided here is for general informational purposes only and should not be considered individualized investment advice. All expressions of opinion are subject to change without notice in reaction to shifting market conditions.<\/em><\/small><\/p>","protected":false},"excerpt":{"rendered":"

Refiners\u2019 Margins are at Historic and Painful Lows September 11, 2020 As one measure of refineries\u2019 profitability is the profit margin (\u201cCrack Spread\u201d), the difference between the price of a refined product and the price of the underlying crude oil.\u00a0 For example, the first chart below is the difference between the December Heating Oil (ULSD) […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[1],"tags":[],"class_list":["post-6958","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/www.fundamentalanalytics.com\/ar\/wp-json\/wp\/v2\/posts\/6958","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.fundamentalanalytics.com\/ar\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.fundamentalanalytics.com\/ar\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.fundamentalanalytics.com\/ar\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.fundamentalanalytics.com\/ar\/wp-json\/wp\/v2\/comments?post=6958"}],"version-history":[{"count":1,"href":"https:\/\/www.fundamentalanalytics.com\/ar\/wp-json\/wp\/v2\/posts\/6958\/revisions"}],"predecessor-version":[{"id":6961,"href":"https:\/\/www.fundamentalanalytics.com\/ar\/wp-json\/wp\/v2\/posts\/6958\/revisions\/6961"}],"wp:attachment":[{"href":"https:\/\/www.fundamentalanalytics.com\/ar\/wp-json\/wp\/v2\/media?parent=6958"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.fundamentalanalytics.com\/ar\/wp-json\/wp\/v2\/categories?post=6958"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.fundamentalanalytics.com\/ar\/wp-json\/wp\/v2\/tags?post=6958"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}