Resurgent demand drives US refining recovery
The domestic downstream sector is bouncing back on healthier margins, but the energy transition threat still looms large
Refining margins in the US got a head-start on their usual seasonal uptick this year thanks to particularly inclement winter weather. The ‘Big Freeze’ paralysed refining operations on the US Gulf Coast and sent weekly US crude throughput to its lowest levels this century in late February. To make matters worse—or better for those still able to run—many idled units struggled to return quickly, drawing product inventories to markedly more constructive levels, despite an end-user demand environment that was and is still ravaged by Covid-19. US crude intake has rebounded by 50pc from record lows, but clean product inventories continue to draw, a sign of particularly healthy end-user demand in re
Also in this section
28 March 2024
The country’s largest gas field is a bright spot for the North Sea, boasting cleaner operations amid a changing mood in Europe over hydrocarbons
28 March 2024
Whether OPEC+ starts to unwind its oil production cuts from June will depend on heavily debated unfolding supply-demand balances
28 March 2024
As a gas supply shortfall looms, balancing regulatory flexibility with energy security and investor confidence will be critical
27 March 2024
Oil producers have to untangle the increasingly complicated relationship with their natural resources