Drill, baby, drill? More like refine, baby, refine.
As the shale oil boom faces its first slowdown, America’s refiners are running harder than ever to keep up with drivers. Refineries in the U.S. used 16.8 million barrels of oil a day last week, the most in government data going back to 1982. They are burning through stockpiles of crude that earlier this year were the highest since 1930 to provide gasoline to motorists who are driving at a record pace.
The profit for turning crude into gasoline and diesel along the Gulf Coast, where about half of U.S. refineries are located, was the highest for this time of year in at least a decade yesterday, according to data compiled by Bloomberg.
Remember 2008? As oil tanked, refiners were sitting on a huge supply of gasoline (sort of like today as refiners have been running flat out) at higher input costs and ended up selling at a loss as oil continued to drop... Sure hope this is not setting up the same... The only difference is, at least for now, the US is not heading into recession, but that could change in a heartbeat as earnings from nearly all sectors continue to miss and everything gets adjusted down. Don't want to be the devils advocate, but I am getting a bit nervous....
Excellent points and as well the deal needs to pass congress first and congress has 60 days. And the bulk of Iranian oil won't hit the market till 2016 if the nuke deal is actually passed.
Any oil added to the supply anywhere makes the oil we do import cheaper. And it is, and that's why the refiners are doing great. Look at the five-year chart, stop freaking out day by day ;)
The US does not import Iranian crude and the US does not export domestic crude only refined products.
Another point, most all Iranian crude that is in current storage has very high sulfur content which us useless to most refineries.
wonder what the nuke deal may have on WNR? Just caught a glimpse of a comment about acquisition of IRANIAN OIL? Oh well guess, regardless it still has to be "refined" NOR ANY THOUGHTS ON THIS? Was / Is this a $ 60. Dol stock?