U.S. Refining Margins Decline as Mid-continent Crude Oil and Light/Heavy Differentials Narrow
Will Jones Act Ships Play a Larger Role Supplying the U.S. Northeast?
March 1, 2012
Baker & O'Brien, Inc.’s fourth quarter (Q4) 2011 release to PRISM™ subscribers reported a significant cash margin decrease from the previous quarter, in every PADD. Margins in PADDs 2 and 4 dropped considerably more than the rest, largely due to the narrowing of the West Texas Intermediate (WTI) price discount that coincided with the announced reversal of the Seaway Pipeline. Flat year-to-year cash margin results for the United States (U.S.), as a whole, masked improvement in the Midwest and Rocky Mountains, and declines in PADDs 1, 3, and 5.
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