Oil Refining Profits Seen at Two-Year Lows on Gloomy Outlook

Bloomberg04-24

(Bloomberg) -- US oil refiners that have been among this year’s strongest S&P 500 performers are headed for a reckoning with a darkening supply-and-demand outlook. Most Read from Bloomberg Taylor ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2430946953?lang=en_US&edition=fundamental","thumbnail":"https://s.yimg.com/uu/api/res/1.2/JUwZwsKH9FsTGS2zDMLKKA--~B/aD02NzU7dz0xMjAwO2FwcGlkPXl0YWNoeW9u/https://media.zenfs.com/en/bloomberg_markets_842/fda23edeac8246c3cc466fa1d8a86e1f","is_english":true,"pubTime":"2024-04-24 20:00","share_image_url":"https://static.laohu8.com/5f26f4a48f9cb3e29be4d71d3ba8c038","id":"2430946953","market":"us","top_or_hot":-1,"title":"Oil Refining Profits Seen at Two-Year Lows on Gloomy Outlook","media":"Bloomberg","content":"<div>\n<p>(Bloomberg) -- US oil refiners that have been among this year’s strongest S&P 500 performers are headed for a reckoning with a darkening supply-and-demand outlook.\nMost Read from Bloomberg\n\nTaylor ...</p>\n\n<a href=\"https://finance.yahoo.com/news/oil-refining-profits-seen-two-120000256.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Oil Refining Profits Seen at Two-Year Lows on Gloomy Outlook</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nOil Refining Profits Seen at Two-Year Lows on Gloomy Outlook\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-04-24 20:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/oil-refining-profits-seen-two-120000256.html><strong>Bloomberg</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>(Bloomberg) -- US oil refiners that have been among this year’s strongest S&P 500 performers are headed for a reckoning with a darkening supply-and-demand outlook.\nMost Read from Bloomberg\n\nTaylor ...</p>\n\n<a href=\"https://finance.yahoo.com/news/oil-refining-profits-seen-two-120000256.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU0368265418.SGD","symbol_name":"Blackrock World Energy Fund A2 SGD-H","start_time":0,"source_url":"https://finance.yahoo.com/news/oil-refining-profits-seen-two-120000256.html","article_id":"2430946953","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/JUwZwsKH9FsTGS2zDMLKKA--~B/aD02NzU7dz0xMjAwO2FwcGlkPXl0YWNoeW9u/https://media.zenfs.com/en/bloomberg_markets_842/fda23edeac8246c3cc466fa1d8a86e1f"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2430946953","pubTimestamp":1713960000,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":" -- US oil refiners that have been among this year’s strongest S&P 500 performers are headed for a reckoning with a darkening supply-and-demand outlook.Taylor Swift Is Proof That How We Critique Music Is Broken. Biden’s Gains Against Trump Vanish on Deep Economic Pessimism, Poll Shows. Biden’s New Chopper Is Demoted After Scorching White House Lawn. Marathon Petroleum Corp., Phillips 66 and Valero Energy Corp. are set to report their weakest quarterly profits in two years starting this week. For Marathon, the pain is expected to linger as the biggest independent US refiner by market value braces for a second consecutive year of declining sales — the first time that will have happened in almost a decade.For the time being, Wall Street is still bullish on independent refiners, or fuel makers that don’t also drill oil wells or operate huge chemical bu","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU0368265418.SGD":"Blackrock World Energy Fund A2 SGD-H","PSX":"Phillips 66","IE00BSNM7G36.USD":"NEUBERGER BERMAN SYSTEMATIC GLOBAL SUSTAINABLE VALUE \"A\" (USD) ACC","BK4138":"石油与天然气的炼制和营销","LU0266512127.USD":"摩根大通环球自然资源 A(acc)","MPC":"马拉松原油","BK4585":"ETF&股票定投概念","LU0300736492.USD":"FRANKLIN NATURAL RESOURCES \"A\" (USD) INC","LU0456854461.SGD":"JPMorgan Funds - Global Natural Resources A (acc) SGD","BK4588":"碎股","LU0122376428.USD":"贝莱德世界能源基金A2","VLO":"瓦莱罗能源","SG9999001440.SGD":"United Global Dividend Equity Fund A SGD Dist"},"translate_title":"前景黯淡，炼油利润降至两年低点","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"MPC":0.9,"PSX":0.9,"VLO":0.9},"content_text":"(Bloomberg) -- US oil refiners that have been among this year’s strongest S&P 500 performers are headed for a reckoning with a darkening supply-and-demand outlook.\nMost Read from Bloomberg\n\nTaylor Swift Is Proof That How We Critique Music Is Broken\nBiden’s Gains Against Trump Vanish on Deep Economic Pessimism, Poll Shows\nBiden’s New Chopper Is Demoted After Scorching White House Lawn\nTesla Soars as Musk’s Cheaper EVs Calm Fears Over Strategy\n\nMarathon Petroleum Corp., Phillips 66 and Valero Energy Corp. are set to report their weakest quarterly profits in two years starting this week. For Marathon, the pain is expected to linger as the biggest independent US refiner by market value braces for a second consecutive year of declining sales — the first time that will have happened in almost a decade.  \nRefining stocks started the year with a bang as a convergence of fuel-supply threats from the Red Sea to Russia and the US Great Lakes supported margins earned from turning crude into gasoline, diesel and other products. That measure, known as the crack spread, has been above $50 a barrel on the US West Coast this year, and close to $30 nationwide.\nMarathon was up as much as 48% in the first weeks of the year, with Valero and Phillips close on its heels at 41% and 30%, respectively. That all changed in early April, when interest-rate expectations abruptly shifted from optimism to worry, triggering concern about economic growth and the energy demand that underpins it.\nSince then, Marathon and Valero have each declined 9% and Phillips has dropped 8%. Valero will kick off first-quarter earnings season for the biggest independent refiners before US equity markets open on Thursday. Phillips will follow the next day and Marathon will report on April 30.   \nOn a combined basis, the trio control roughly four out of every 10 barrels of crude processed in the world’s largest economy, according to data collected by Bloomberg. That puts them in a unique position to see first-hand how demand for fuels that power, trucks, trains, airplanes and cars is fluctuating as the economy waxes and wanes.\nRead More: US REFINERY INSIGHTS: Eyes on Summer as Turnaround Season Peaks\n“US refiners got off to a hot start in 2024 as federal-fund rate expectations bottomed out in mid-January,” said Bloomberg Intelligence analyst Brett Gibbs. Now “the focus is setting in on the shape of domestic demand.” \nGasoline and diesel demand already are lower than normal for this time of year, which is an “overhang heading into the summer-driving stretch” when US demand typically peaks, he added.\nLater this year, about 1 million barrels of new, daily refining capacity is expected to come online even as gasoline demand expands by less than 1%, according to Austin Lin, an analyst at Wood Mackenzie Ltd. That will increase competition for US fuel makers.\nFor the time being, Wall Street is still bullish on independent refiners, or fuel makers that don’t also drill oil wells or operate huge chemical businesses. Among Marathon Petroleum, Valero and Phillips 66, the buy-to-sell-or-hold ratio averages 68%, according to data compiled by Bloomberg.  \nUkrainian attacks on Russian refineries along with Red Sea shipping disruptions have created global daily supply gaps to the tune of hundreds of thousands of barrels, according to TD Cowen’s Jason Gabelman and Michael Laupheimer. \nMoreover, many refiners got seasonal repairs and maintenance work out of the way early in the year, which puts them in a better position to capitalize on any spikes in summer fuel demand.\n“Are these cracks sustainable?” asked Nitin Kumar, an analyst at Mizuho Securities USA. Top of mind for investors monitoring earnings-season conference calls will be answers to questions such as, “Are they seeing strength in demand? Are they seeing any softness in US markets, especially after the turnaround season ended?”\n--With assistance from Barbara Powell.\nMost Read from Bloomberg Businessweek\n\nA Hedge Fund Billionaire’s Cash Helped Fund a ‘Predatory’ Lender\nBig Junk Food’s Campaign to Get You Eating Doritos and Oreos for Dinner\nHow a Massive Hack of Psychotherapy Records Revealed a Nation’s Secrets\nChina’s Bubble Tea Boom Creates a Half-Dozen Billionaires\nStudio Behind Dune Eyes Growth, Even Without a Paramount Merger\n\n©2024 Bloomberg L.P.","kind":null,"is_publish_news":null,"is_publish_highlight":null,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.22.4","shortVersion":"4.22.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2430946953"}