Oil Refineries

The refiner HF Sinclair beat Wall Street expectations for its third-quarter adjusted profits on Thursday. This was due to improvements in refining margins as well as strength in the midstream segment. Shares of HF Sinclair rose 1% in premarket trade. Fuel producers in the U.S. benefited from an increase in pricing due to supply shortages resulting from geopolitical tensions affecting Ukraine. Companies such as Valero Energy, Phillips 66 and others also beat Wall Street's expectations. U.S. refinery profit margins measured by the 3-2-1 Crack Spread In the third quarter, grew by nearly 29% in average compared to a year ago,...

The refiner Phillips 66 exceeded Wall Street expectations for its third-quarter profits on Wednesday. This was due to higher fuel margins and record volume in its pipeline business. The shares of the company increased 1% in premarket trading. The U.S. refinery margins are recovering from a multi-year slump. Profits were down from their post-pandemic peak and supply shocks caused by Russia's invasion in Ukraine 2022 have faded. Quarterly U.S. Refinery margins On average, the price of a car has risen by 25% since its multi-year lows. The recovery has helped top refiners including Valero Energy post stronger-than-expected quarterly results. Phillips...

Marathon Petroleum will restart the fluidic catalytic unit that produces gasoline and the Ultracracker hydrocracking units (HCUs) that produce diesel at its 631,000 barrels per day (bpd), Galveston Bay refinery in Texas City. This is according to people familiar with plant operations. The sources say that Marathon will complete the repairs of the 64,000 bpd residual Hydrotreater at the Galveston Bay Refinery, which was damaged by fire, in mid-November. This is a month after the original plan. Marathon spokesperson Jamal Kheiry refused to discuss the operations of the Galveston Refinery which is the second-largest refinery in the United States. Sources...

Valero Energy in the United States, which is kicking off earnings season for refiners on Thursday, reported better-than expected third-quarter results as refining margins were supported throughout the quarter, and refinery throughputs in the Gulf Coast region and North Atlantic region reached new heights. On Thursday, shares of the company rose 6.8% to $172.90. Fuel producers have seen their margins rebound from the multi-year lows of 2024, as supply shortages linked to geopolitical tensions with Ukraine boosted pricing. On a Thursday conference call, Lane Riggs, Chief Executive Officer of Lane Riggs Corporation told analysts that "refining margins were well supported...

Valero Energy, a U.S. refiner, beat Wall Street's expectations for the third quarter profit on Thursday. This was due to a rebound in refinery margins as well as record refinery output in the Gulf Coast region and North Atlantic. In premarket trading, shares of the company rose by 3% to $166.51, kicking off the earnings season in the United States. After two years of record profits, the refining margins recovered in 2024 from their multi-year lows, as supply shortages linked to geopolitical tensions with Ukraine supported higher pricing. U.S. refinery profit margins measured by the 3-2-1 Crack Spread In the...

Bidders pursue the parent company of Venezuelan-owned U.S. refiner Citgo Petroleum Creditors waiting to receive proceeds from the court ordered auction clashed on Tuesday in Delaware over which offer would be approved at the end of two years. The court is trying its best to finish the auction in order to compensate up 15 creditors for defaults on debts and expropriations that occurred in Venezuela. Citgo Holding, Citgo's parent company, was found responsible for Venezuela's debt in the eight-year long case. Citgo and Venezuela lawyers asked the court to reject the $5.9 billion offer of an affiliate of Elliott Investment...

Gold Reserve, a Toronto-listed company, accused the firms that advised a U.S. Court on the auction for Citgo Petroleum parent's parent that they received $170 million from parties who would receive proceeds and a bidder recommended as the winning party. These accusations are just the latest twist to an auction which has been dragging on for almost two years. They could also threaten to slow down further. The Delaware court began to discuss the fees on Monday following Gold Reserve's Motions earlier this month. Gold Reserve wanted to disqualify a judge and court officer overseeing the auction, as well as...

Five sources said that an affiliate of Elliott Investment Management wanted to cut costs in Citgo Petroleum, a Venezuelan-owned refiner, while a unit from Gold Reserve was mainly focused on maintaining the statusquo. This is as the long auction which will determine the refiners' future approaches its end. The details of the competing visions of Citgo were revealed ahead of an auction to select the winner of PDV Holding, Citgo's parent. The Delaware court ordered the auction of shares to be held to pay for Venezuelan debt defaults, expropriations and other damages. The judge will decide next week who wins...

Delek US Holdings sued London's Marex Group, and Texas' BTX Energy. They were accused of supplying contaminated oil which damaged its U.S. refining plant and caused losses of more than $30,000,000. Delek, in a court filing in Texas Chambers County District Court, said that it started buying crude oil from Pinnacle Fuel back in January. Deliveries were handled by BTX Energy’s terminal in Winnie. According to the complaint, Delek detected abnormally high levels organic chlorides by February in its Heavy Naphtha Hydrotreater Unit. Marex declined comment, and BTX Energy didn't immediately respond to a comment request. Delek claims that tests...

California Governor Gavin Newsom’s press office announced on Thursday that a fire had broken out at Chevron’s El Segundo Refinery, which is one of the largest refineries on the U.S. West Coast. A county official added that the flames were contained to a single area. CBS reported that officers and firefighters were rushed to the refinery after hearing reports of an explosion. Newsom's Press Office said on X that "our office is working with local and state agencies in order to... ensure public security." CBS reported that police said they did not know of any immediate injuries, evacuations or other...

Crude oil prices have been driven primarily by the unwinding OPEC+ production cut, China storage flows, and geopolitical tensions this year. This is likely to continue for the foreseeable. It is important to understand the factors that influence the market. It is impossible to predict with accuracy the future of these factors. Forecasting the market is a difficult task for the crude oil industry because all three factors are unpredictable and can change rapidly. The Energy Markets Forum, held in Fujairah (the hub for oil storage and shipping in the United Arab Emirates) this week, was a place where participants...

Refining executives in Europe said that European refineries have to invest in energy conversion projects because of the modern, complex competitors from Asia, Middle East, and Africa. Tony Fountain, Essar's managing partner, said at the Argus global markets conference in London: "I guess we're all playing a game of last man standing to ensure we don't shut down." European refineries are under pressure from environmental regulations and modern plants to increase production of cleaner fuels such as biofuels and sustainable aviation fuel to meet the regulatory demand. The regulatory environment does not just tell us what we can do. This...

Two sources with knowledge of the situation said that after European Union sanctions earlier in the year, Nayara Energy, a Russian-backed Indian refiner, has increased crude processing to 90-93% capacity at its Vadinar Refinery. Sources have said that oil processing at Nayara’s 400,000 barrels-per-day western India plant fell to 70 to 80 percent after the EU sanctions it in July. This impacted its exports, and caused suppliers like Iraq and Saudi Arabia, to stop crude sales to the firm. Nayara was operating at 104% capacity before the sanctions. Nayara, a majority-owned company by Russian entities, is dominated by Rosneft. Rosneft...

Analysts and trade sources reported that Asian oil refinery profits had risen to their highest level in 20 months. This was due to a strong diesel performance, which has been boosted by a tightening of the outlook following US sanctions against two major Russian suppliers. Singapore's complex refinery margin, a proxy of Asia's refining profitability rose to almost $9 a barrel Tuesday, the highest since February 2024. LSEG data shows that it was about $2 a barrel early October. The global diesel market has been the main driver of strength in recent weeks, with a strong demand and tighter supplies....

Three sources with knowledge of the situation said that some Indian refiners were preparing to reduce their Russian oil imports. The U.S. was pressuring New Delhi, to stop purchasing Russian crude in order to end the conflict in Ukraine. Donald Trump, the U.S. president, said on Wednesday that Prime Minister Narendra modi assured him that India would stop purchasing oil from Russia - its main source of oil imports. India's main goal, it said on Thursday, was to secure energy supply and maintain stable prices. In a volatile energy market, it has always been our priority to protect the Indian...

Crude oil prices have been driven primarily by the unwinding of OPEC+'s production cuts, China's storage flows, and geopolitical tensions this year. This is likely to continue for the foreseeable. It is important to understand the factors that influence the market. It is impossible to predict with accuracy the future of these factors. Forecasting the market is a difficult task for the crude oil industry because all three factors are unpredictable and can change rapidly. The Energy Markets Forum, held in Fujairah (the hub for oil storage and shipping in the United Arab Emirates) this week, was a place where...

Four market sources said on Friday that the price of Russia's Urals Crude Oil for delivery to India, its top buyer, is increasing despite rising sanctions risks. This is because Ukrainian attacks on Russian pipelines and ports as well as tightened sanctions have led to concerns over supply. In September, Ukrainian drone attacks disrupted the export of oil and increased production risks. This forced Russia to ship oil to western ports in order to reduce the impact. Four sources who are involved in Russian oil exports to India reported that the discount on Urals crude October loading has decreased to...

Two industry sources reported on Monday that one of Russia's biggest oil refineries in the town of Kirishi (northwest) had halted an important processing unit after a Ukrainian drone attacked over the weekend. Ukraine intensified its attacks on Russia's infrastructure to damage Moscow's war effort, as the talks to end the conflict have stagnated. Russian officials have said Surgutneftegaz's Kirishinefteorgsintez plant, one of Russia's top two refineries, was among the targets attacked by Ukrainian drones last Sunday. Alexander Drozdenko is the Governor of Leningrad Region. He said that three drones had been destroyed in the Kirishi region and that a...

In August, China's excess crude grew to just under 1 million barrels a day (bpd), as imports and domestic production outpaced an increase in refinery processes. According to the National Bureau of Statistics, data released on Monday shows that China's refiners produced 14.94 million barrels per day in August, an increase of 7.6% compared to the same period last year. This is the second highest month of the past 17. The crude oil imports in August were 11,65 million bpd, and the domestic production rose by 2.4% compared to the same month of 2024. It now stands at 4.3 million....

Three people with knowledge of the situation said that Russian-backed Indian refiner Nayara Energy was seeking Indian government assistance to obtain equipment and materials for maintenance, as European Union sanctions are making it difficult to procure key items. Sources said that the private refiner had approached the Centre for High Technology (a advisory body within the Indian oil ministry) to seek assistance in locating specialised equipment, catalysers, and other raw material. Nayara, and the Centre for High Technology, did not respond immediately to comments. Sources said that Nayara, which is majority owned by Russian companies, including Rosneft oil giant, operates...

Radiy Khabirov, the regional governor of Bashkortostan in Russia, said that a company producing oil will continue to produce despite an attack by drone on Saturday. Ukraine intensified its attacks on Russian energy infrastructure to weaken Moscow's military capability, while peace negotiations are still stuck. The attack caused a fire to break out at an oil refinery operated by Bashneft. Rosneft is Russia's biggest oil producer. Bashneft operates four major oil and petrochemical refineries in the area. Khabirov didn't specify the facility that was targeted. Both drones that were downed fell onto the property of the company. In the first...

Two people with knowledge of the situation said that Berlin was considering extending its trusteeship for the sixth time over the German assets owned by Russian oil producer Rosneft, as the efforts to sell this business continue. The renewed trusteeships put pressure on Berlin to create a more suitable legal structure for Rosneft’s activities in Germany. This situation is emblematic for the challenges Berlin faces when dealing with Russian assets located in Germany, at a moment when efforts are intensifying to end the conflict in Ukraine. In September 2022, the German assets of Rosneft, including the Schwedt refinery, MiRo refinery,...

Two analysts and a trader reported on Tuesday that Chinese refineries had purchased 15 cargoes for delivery in October and November as Indian demand for Moscow’s exports has declined. India is the largest buyer of Russian oil by sea. It has been sold at a discounted price since Western nations have shunned purchasing and placed restrictions on Russian exports due to Moscow's invasion of Ukraine in 2022. Indian state refiners stopped buying Russian oil last month as the discounts shrank. Donald Trump, the U.S. president, has also threatened to punish countries that buy Russian crude. Richard Jones, an Energy Aspects...

According to data and trade sources, India's Russian imports fell in July, after a jump the month before. This was because some refiners reduced purchases due to lower discounts. Indian fuel demand is also known to drop during the monsoon. The third largest oil consumer and importer in the world, India, is likely to see further slowdowns of Russian oil imports during August and September. Indian refiners have halted Urals crude purchases due to smaller discounts while U.S. president Donald Trump has warned India to stop buying Russian oil. The data shows that India imported 1.5 millions barrels of Russian...