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Refinery margins, crude prices, and investments: Breaking bad-er?

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Refinery margins, crude prices, and investments: Breaking bad-er?

This ICF International white paper examines Å·²©ÓéÀÖ pattern of refinery crude runs and margins and Å·²©ÓéÀÖ potential implications of global and domestic product demands on those margins as well as on Å·²©ÓéÀÖ demand and price for crude oil during Å·²©ÓéÀÖ first quarter U.S. refinery turnaround period. Key discussion topics include:

  • Record production and crude runs
  • Weakening of gross margins
  • Lack of demand
  • Worsening near-term supply outlook
  • Investment and sector impacts

The oil industry is reeling from Å·²©ÓéÀÖ dramatic decline in crude oil prices and Å·²©ÓéÀÖ potential impact on U.S., Canadian, and global crude production. Much less discussion surrounds Å·²©ÓéÀÖ steady declines in U.S. and global refinery margins that have occurred coincident with Å·²©ÓéÀÖ crude price decline and that appear to have led Å·²©ÓéÀÖ crude market down.

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