We have been arguing since before crude prices started to fall that oil would likely decline in price and this was a sign of a global slowdown. We wrote these fears (
What Oil Could be Telling Us) as far back as June 2023. Now several leading US oil refiners are scaling back operations this quarter, raising concerns about a potential global surplus of crude oil.
Marathon Petroleum Corp., the largest US refinery owner, plans to operate its 13 facilities at an average of 90% capacity this quarter, marking the lowest utilization rate for this period since 2020. PBF Energy Inc. also announced plans to process the least crude in three years, while Phillips 66 will run its refineries near a two-year low, and Valero Energy Corp. anticipates reducing its oil processing.
These four refiners represent approximately 40% of the US capacity to produce gasoline and diesel. The slowdown in refining ac ...
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