Record-breaking decline in refining margins raises concerns
- October refining margins decline significantly
- Largest month-to-month declines since 2010
- Gasoline cracks and middle distillate cracks contribute to weaker margin environment
- Gulf Coast sees steep decline due to higher gasoline yield
- Global refining crude throughputs expected to reach record levels in December
- IEA forecasts higher crude runs in 2023 and 2024
Petroleum refiners experienced some of the steepest declines in refining margins in October, marking the largest month-to-month decrease since 2010, according to the International Energy Agency (IEA). The decline was driven by a collapse in gasoline cracks and declines in middle distillate cracks. The Gulf Coast saw a particularly steep decline due to its higher percentage yield of gasoline. Despite the low refining margins, the IEA expects global refining crude throughputs to reach record levels in December. The agency also forecasts higher crude runs in 2023 and 2024, surpassing previous expectations.
Factuality Level: 8
Factuality Justification: The article provides specific data and quotes from the International Energy Agency’s monthly Oil Market Report, which lends credibility to the information presented. The article does not contain any obvious bias or personal perspective. However, it is important to note that the information is based on the analysis and interpretation of the IEA, and there may be other factors or perspectives that could influence the refining margins and crude throughputs.
Noise Level: 7
Noise Justification: The article provides information on the decline in refining margins and the factors contributing to it. It also includes forecasts for global refining crude throughputs. However, it lacks in-depth analysis, evidence, and actionable insights. The article stays on topic and does not dive into unrelated territories.
Financial Relevance: Yes
Financial Markets Impacted: Petroleum refining companies and global oil markets
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article discusses the decline in refining margins for petroleum refiners around the world, which has financial implications for these companies and the global oil markets. However, there is no mention of an extreme event.
Private Companies: Oil Price Information Service,Dow Jones & Co.
Key People: Steve Cronin (Reporter), Michael Kelly (Editor)
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