Refiners that do not do this must buy credits from refiners that do.
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U.S. refiners are having a miserable summer, with refiners like Tesoro and Valero at new lows. Why?
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Bars returned to Switzerland have been reported by refiners to the Swiss authorities who impounded them, refiners said.
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U.S. regulations require refiners to blend biofuels into their gasoline or buy credits to fund those refiners who can.
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In India, refiners are facing a tough cash flow situation, an official at one of the state refiners said.
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While Shell and other large refiners invested in cleaner fuel technology, AFPM has fought hard against standards requiring refiners to blend or subsidize the blending of biofuels into the gasoline pool - saying it hurts independent refiners.
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Gulf Coast refiners would be able to take advantage of the reduced costs of exports, but landlocked refiners in the Midwest and import-dependent refiners on the U.S. East Coast would be disproportionately hurt, Heminger said.
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Refiners are required to blend biofuels into the nation's gasoline pool or buy credits to fund those refiners who can.
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Refiners would have a mixed impact, with east coast refiners, seeing a negative impact because of their dependence on foreign oil.
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U.S. regulations require refiners to blend biofuels into the nation's gasoline pool or buy credits to fund those refiners who can.
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That will likely limit the ability of refiners to ship fuel, and may encourage refiners coming back online to export more.
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The plan under consideration would force large refiners to blend extra volumes to compensate for the hardship waiver exemptions for small refiners.
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Midwest refiners can access Canada's crude via pipeline; East Coast refiners have to pay more to get it shipped on boats or trains.
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The LBMA said good delivery refiners had always been consulted on changes and the creation of a refiners committee was "a natural progression".
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Much of the East Coast will have to turn to fuel shipped by railroads from refiners in the country's midsection and by tanker from other American coastal refiners and European and possibly Middle Eastern refiners for the next four to eight weeks.
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BP, Shell and other large refiners which have invested in cleaner fuel technology in recent years have also opposed AFPM's efforts to oppose standards requiring refiners to blend or subsidise the blending of biofuels into the gasoline pool, saying it hurts independent refiners.
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U.S. refiners have warned the Trump administration that tariffs would make Mexican crude imports less competitive, boost fuel costs, and squeeze refiners' profit margins.
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"Midwest refiners are going to be able to transport that fuel into the Pennsylvania area cheaper than the northwest European refiners are," Burford said.
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Pruitt's EPA granted 25 refiners waivers to annual requirements to mix in biofuels on the grounds that the regulation causes these refiners economic hardship.
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Why: There are at least 2 reasons: The Treasury Department orders give refiners several months to wind down purchases, and refiners could see this coming.
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But the AFPM has opposed standards requiring refiners to blend or subsidise the blending of biofuels into the gasoline pool, saying it hurts independent refiners.
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Buckeye argued there was more demand from Midwest refiners than from East Coast refiners for pipeline capacity, so reversing the line made the most commercial sense.
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"Indian refiners were struggling for survival ... The ban on refined palm oil imports will help refiners, local farmers and help in creating new jobs," Mehta said.
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It also means that demand for fuel produced by India's privately owned refiners will likely climb during the period, as state refiners seek to fill the gap.
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"It's open to all GDL refiners and is an opportunity to discuss among other things challenges facing refiners and areas of mutual interest," the LBMA told Reuters.
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N, three of the largest independent refiners, have had more downward earnings revisions over the last 30 days than other independent refiners, according to Thomson Reuters data.
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Such exemptions free refiners from the requirement to either blend biofuels into their refined products, or to buy EPA-awarded credits from refiners who do such blending.
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REFINERS Refiners in the Volga region, central and southern Russia - the heart of Russian refining - are expected to face a rise in organic chloride levels, the sources said.
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Under the RFS, refiners must either blend biofuels like ethanol and biodiesel into their traditional gasoline and diesel or buy credits from other refiners that have done so.
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Based on that expectation, India's refiners should see refining margins, also known as cracks, in the range of $7-$8 per barrel for all three state-owned refiners.
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Midwest refiners are clashing with East Coast refiners over a proposal to reverse the flow of fuels on a Pennsylvania pipeline that transports refined products from east to west.
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The ability of China's refiners to export fuels has been aided by the higher crude import quotas granted this year to smaller, independent refiners, by the authorities in Beijing.
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In the case of gasoline, U.S. refiners significantly boosted exports to Mexico and other destinations in Latin America, reflecting limits on local refiners' ability to meet growing demand there.
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David Nunez, CEO of Apache Refinery Services, which helps refiners with turnarounds and other construction projects, said refiners are tightening their belts in ways he hasn't seen in years.
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"While a few refiners have suspended production as a result of COVID-19, the other good delivery refiners are ready and able to accommodate the industry's needs," it said.
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Refiners urge Trump not to tariff Mexico US refiners will be forced to either pay the 5% tariff for Mexico's oil or, more likely, pay up for heavy barrels elsewhere.
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BEIJING (Reuters) - China will issue non-state crude oil import licenses to five refiners, including China National Chemical Corp and four independent refiners, the country's commerce ministry said on Tuesday.
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While Shell and other large refiners have invested in the cleaner fuel technology, AFPM has fought hard against the Renewable Fuel Standard from which some independent refiners could lose out.
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Asian refiners have said they plan to buy oil from alternative sources, including the U.S., if OPEC cuts, and BP and Sinopec have already started bringing U.S. oil to Asian refiners.
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Overall, refiners are still enjoying healthy margins as the strong profits from gasoline compensate for much weaker profits on distillates; the market is signalling that refiners should continue to maximise production.
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Overall, refiners are still enjoying healthy margins as the strong profits from gasoline compensate for much weaker profits on distillates; the market is signaling that refiners should continue to maximize production.
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The cost for refiners has increased sharply in the last few years; nine major publicly traded refiners paid $2.5 billion in 2016 for RINs costs, a 78 percent increase from 473.
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NEW YORK (Reuters) - U.S. independent refiners like Phillips (PSX.
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China's refiners, including state-owned Sinopec Corp, PetroChina, China National Offshore Oil Company, and independent refiners such as Hengli Petrochemical and those in Shandong have cut their crude processing rate in February.
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A shift would mean lower costs for the merchant refiners and a more mixed impact on integrated companies like Marathon Petroleum, which would lose the revenue generated from selling RINs to refiners.
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The two major oil companies produce notable amounts of crude oil that refiners have settled on as the immediate replacement for the heavy Venezuelan crude that U.S. refiners relied on for years.
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U.S. East Coast refiners like PES lack access to cheaper crude that refiners in other parts of the country enjoy, which inflicts greater pain on the region's industry when margins are low.
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China's refiners, including state-owned Sinopec Corp , PetroChina, China National Offshore Oil Company, and independent refiners such as Hengli Petrochemical and those in Shandong have cut their crude processing rate in February.
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LBMA-accredited refiners, known as 'good delivery list' (GDL) refiners, are invited to an annual meeting with the LBMA, but the association said these meetings would now be formalized into an official committee.
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"While a few refiners have suspended production as a result of COVID-19, the other good delivery refiners are ready and able to accommodate the industry's needs," the LBMA said in a statement.
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Bowing to the inevitable, refiners themselves are leading the consolidation.
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Some refiners still refuse because of their relationships with Baghdad.
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The reverse condition, contango, would motivate refiners to store product.
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The general boom in demand is a boon for refiners.
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Some refiners have already cut output as gasoline margins sink.
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As a result the refiners decreased direct purchases from PDVSA.
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Many refiners in Europe were left with no primary aluminum.
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Refiners in Louisiana also have been scrambling ahead of Nate.
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The glut had seen state refiners sending more cargoes abroad.
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Iran grants a 60 day credit period to Indian refiners.
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Refiners are clearly losing their appetite for more crude oil.
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Refiners also replenished stocks ahead of the national day holidays.
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There could be better news for refiners in China, too.
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American sugar refiners won; they will make money by protection.
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With better margins for gasoline, refiners moved in that direction.
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Aside from oil refiners, automakers and retailers oppose the tax.
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"I think refiners knew this was coming," one broker said.
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That's good news for some refiners that process light crude.
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But the sugar industry and the corn refiners are upset.
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U.S. Gulf Coast refiners would also be affected, Tillerson said.
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The reopening will allow seven local refiners to resume operations.
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That change would likely reduce costs for the merchant refiners.
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HollyFrontier and Andeavor were two of the top performing refiners.
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Several other refiners have seen estimates decline a similar amount.
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Gulf Coast refiners can't operate on US shale oil alone.
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Graphic: Top refiners in the United States png, click tmsnrt.
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None of those refiners immediately responded to requests for comment.
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Refiners around the world have responded by boosting VLSFO production.
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Bode is president and CEO of the Corn Refiners Association.
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Other refiners will look at alternative markets for their HSFO.
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However, some Chinese refiners are snapping up cheap crude supplies.
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Steel, aluminum, and precious metals could go to metal refiners.
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Moreover, it's likely to hurt rather than help small refiners.
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A source on the side of independent refiners said: "I think the administration is looking for a way to ease the financial burden for refiners without triggering a political backlash from the corn crowd."
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Producers and farmers say Trump pledged he would require large refiners to blend 15 billion gallons of ethanol, even after factoring in the impact of the economic hardship exemptions EPA grants to small refiners.
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Millers said late harvests have impacted fruit quality and deliveries to refiners have been stalled, while refiners are trying to process more crude palm oil into refined products which have a longer shelf life.
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But the effort exposed gaping divisions between the corn and oil lobbies, along with disagreements between integrated refiners like BP Plc and Exxon Mobil Corp and merchant refiners like PBF Energy Inc, over solutions.
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He believes the next few quarters might be a little rough on the refiners as oil stabilizes, but he thinks the refiners' strong balance sheets and high dividends make them a good long-term play.
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The rise in refined palm oil shipments will help refiners in Malaysia and bring down inventories of tropical oil in the world's second bigger producer, but squeeze Indian refiners that traditionally import crude palm oil.
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The market drew additional support from a tentative White House plan to increase the amount of biofuels that oil refiners are required to blend each year to compensate for exemptions handed out to small refiners.
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US refiners used to rely on Venezuela for those heavy barrels.
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But some refiners have had to reduce their runs, traders said.
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Source: FactSet RBC's Calvasina said a Republican sweep would benefit refiners.
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A tariff would discourage Chinese refiners from buying U.S. crude imports.
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The increase came as refiners cut runs, although crude imports fell.
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Refiners in Europe haven't reported any problems with equipment so far.
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Refiners maintain the waivers have not hurt overall demand for biofuels.
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S. refiners import roughly 003,000 barrels per day of Mexican crude.
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Refiners dismiss the argument, saying ethanol demand has not been impacted.
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U.S. crude prices have fallen because refiners are processing less oil.
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U.S. refiners wanted even more stringent terms on imports from Mexico.
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Those companies are also refiners, importers, rack blenders and large retailers.
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Refiners typically purchase supply two months ahead of loading and arrival.
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Refiners dismiss the argument, saying ethanol demand has not been affected.
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The surprise strength in diesel has again caught refiners off-guard.
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NEW YORK (Reuters) - U.S. independent refiners such as PBF Energy (PBF.
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This has left U.S. refiners among the few remaining cash buyers.
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Refiners have said product exports are supporting the high refining rates.
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Oil refiners are required to meet EPA targets for biofuel use.
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Refiners, especially in the Midwest, benefited as gasoline prices sky-rocketed.
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But East and West Coast refiners have more reason to worry.
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As those shipments dwindled, refiners turned to shale and Canadian oil.
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Refiners eliminated MTBE from blending operations and switched entirely to ethanol.
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S. refiners import roughly 680,000 barrels per day of Mexican crude.
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"Refiners will likely lead the rebound whenever markets rebalance," he wrote.
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However, several of the most important of these refiners have closed.
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For oil producers and refiners, stronger demand has been a boon.
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"US refiners will be amongst the biggest losers," Rodriguez-Masiu wrote.
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So far, refiners and agricultural interests have been driving reform efforts.
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Refiners who cannot blend biofuels have to purchase credits from others.
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Refiners across Asia said that was starting to hit their business.
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Refining rates fell as U.S. refiners reduce activity for seasonal maintenance.
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Other refiners in the area did not return requests for comment.
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The change comes after Michael Mesaric, the head of Switzerland's largest refiner, Valcambi, called for a new lobby group called the International Precious Metals Refiners Council to defend refiners' interests and exert influence on the LBMA.
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In a report on Tuesday, BMI Research noted headwinds for independent refiners or "teapots" in China, including limited storage and pipeline capacity in the Shandong province, where around 70 percent of China's independent refiners are located.
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Refiners, integrated oil companies, fuel retailers and biofuels manufacturers flooded the EPA with comments on its plan to deny requests from refiners to tweak the U.S. Renewable Fuel Standard (RFS) by pushing the compliance burden further downstream.
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"The slumping jet fuel demand alone would not force refiners to slow operations, but weakness in overall fuel demand may lead to an adjustment in run rates," Tsukioka said, when asked if Japanese refiners will cut output.
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The plan revives a debate between U.S. refiners and ethanol producers over the nation's renewables policy, and could spur actions from other struggling refiners should the U.S. Environmental Protection Administration allow PES to reduce its biofuel obligations.
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Gulf Coast refiners and North Dakota oil producers will reap the benefits.
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|
A decline in physical crude values generally means better margins for refiners.
|
|
Price controls have squeezed refiners' margins, prompting one refinery to suspend operations.
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Refiners' profits for jet fuel, in particular, have slumped on flight cancellations.
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|
The transition will take place gradually, and oil refiners are not included.
|
|
That gives an advantage to some independent refiners equipped for lighter crude.
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Independent refiners such as Italy's Saras and Finland's Neste will also benefit.
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Currently private refiners Reliance, Essar Oil are regular importers of Venezuelan oil.
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|
Icahn says refiners are at risk of buckling under the increasing costs.
|
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The VanEck Vectors Oil Refiners ETF is up 153 percent this year.
|
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The U.S. tech giant dropped two cobalt refiners and smelters last year.
|
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Independent refiners are expecting lower margins from the new rules as well.
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The greater variety means refiners can optimise their feedstock selections, boosting profitability.
|
|
They therefore typically run on a sweeter slate than other Asian refiners.
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Marathon, like other U.S. refiners, imports a significant amount of crude oil.
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When refiners needed a clean, healthy alternative to MTBE, they embraced ethanol.
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Small and medium-size refiners process roughly half the nation's transportation fuels.
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Venezuela is a key source of heavy sour crude for U.S. refiners.
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These include most major oil and gas companies and some smaller refiners.
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Specifically, the changes will make it harder for refiners to trade RINs.
|
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"Typically, refiners with limited land availability have hydrofluoric acid" units, she said.
|
|
U.S. refiners currently import about 500,000 barrels of oil daily from Venezuela.
|
|
The increased costs will likely eat into razor-thin margins for refiners.
|
|
Several refiners in Asia said they were seeking alternatives to Iranian supplies.
|
|
Refiners often blame these traders for bidding up the price of RINs.
|
|
NEW YORK (Reuters) - Winter has come early for U.S. refiners and blenders.
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Unlike Harvey, Irma is not currently projected to slam Gulf Coast refiners.
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Its members include Alaska oil and gas producers, explorers, refiners, and transporters.
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Book said Toomey's amendment would likely prove beneficial to refiners in Pennsylvania.
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Beijing's signals to its refiners have been mixed, said the two sources.
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Midwest refiners invested billions of dollars to handle the heavier Canadian crude.
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The rule hurts so-called merchant refiners like CVR Energy because they do not blend fuels, which means they have to buy credits from larger refiners with blending and retail operations, such as Valero Energy and Marathon Petroleum.
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Many of China's independent refiners count on the country's state-owned refiners as their main customers for their refined products because they have limited infrastructure such as storage tanks or a retailing network to sell directly to consumers.
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European refiners including France's Total, Azerbaijan's SOCAR and Finland's Neste Oil, all big buyers of Russia's Urals, ordered extra volumes of Saudi crude, but haven't seen nominations confirmed by Saudi Aramco yet, sources at the refiners told Reuters.
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Besides dragging down crude refiners' share prices, this drop in margins could also undercut global oil prices that have struggled up from 12-year lows hit early this year, and refiners say the situation will not improve anytime soon.
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South Korean and Japanese refiners say they are confident of holding their own in Asia where long-term demand is expected to catch up with the supply surplus, but concede that Chinese refiners have an advantage in new markets.
|
|
Other merchant refiners like the San Antonio-based Valero Energy joined Mr. Icahn in pressing the E.P.A. "This is a terrible, flawed rule," said LeAnn Johnson Koch, a lawyer representing a group of smaller refiners, who joined the effort.
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The Renewable Fuel Standard, signed into law by former President George W. Bush, requires refiners to mix increasing levels of renewable fuels into gasoline and diesel each year - a requirement that many refiners say costs them millions of dollars.
|
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The biofuels changes include cutting back on the number of waivers that the Environmental Protection Agency can provide to small refiners to free them from the regulation, and to ensure that any waived obligations are redistributed to other refiners.
|
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Other merchant refiners like the San Antonio-based Valero Energy joined Mr. Icahn in pressing the E.P.A. "This is a terrible, flawed rule," said LeAnn Johnson Koch, a lawyer representing a group of smaller refiners, who joined the effort.
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Shale oil is blended with heavier barrels to allow refiners to maximize production.
|
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It is frequently blended with lighter crudes to give refiners higher-value products.
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The slower parts of energy are there, including Exxon Mobil and some refiners.
|
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He also acknowledged there have been discussions with oil refiners that import crude.
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This will address access concerns for China's independent oil refiners and fuel dealers.
|
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Not all of India's refiners plan to scale back orders from Iran, though.
|
|
East Coast refiners have already closed plants because of their precarious competitive position.
|
|
The suspension, as yet of unclear duration, left refiners scrambling to find supplies.
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In retaliation, India directed its state refiners to cut oil imports from Iran.
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Currently, only private refiners Reliance Industries and Essar Oil currently buy Venezuelan oil.
|
|
Refiners were just coming out of maintenance season when this week's explosion occurred.
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|
The decision sank stock prices of independent refiners PBF Energy and CVR Energy.
|
|
The suspension left refiners scrambling to find supplies and its duration is unclear.
|
|
Venezuela is a key source of heavy sour crude supplies for U.S. refiners.
|
|
At the same time, refiners are struggling to make enough to meet demand.
|
|
Shares of state-run oil refiners also rose on hike in petrol prices.
|
|
The domestic energy sector comprising refiners and petroleum distributors cheered lower oil prices.
|
|
Reliance and other Indian refiners had stopped imports from Iran due to sanctions.
|
|
Most of China's independent refiners are based in the eastern province of Shandong.
|
|
The wide differentials helped Marathon and other refiners report strong second-quarter earnings.
|
|
U.S. refiners would also improve operating efficiencies to reduce their costs, Romasko said.
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|
"All refiners are looking for Urals or a Urals replacement," one trader said.
|
|
U.S. refiners Phillips 66 and PBF Energy declined to comment on commercial arrangements.
|
|
"It's been one of the bright spots for refiners in 2018," said Kloza.
|
|
Saudi Arabia and Russia both produce sour grades that refiners can switch between.
|
|
The alternative is for merchant refiners to increase their ability to blend ethanol.
|
|
If refinery capacity increases or demand falls, refiners could see their margins fall.
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Refiners that aren't able to blend biofuels must purchase RINs from their competitors.
|
|
Three other refiners in Asia said they have not received their July allocation.
|
|
The Trump administration has encouraged small refiners to apply for the hardship waivers.
|
|
But for other refiners in the region and overseas, the timing was perfect.
|
|
Market participants and refiners have had to scramble to adjust to falling prices.
|
|
For an interactive graphic on Venezuelan crude exports to U.S. refiners, see: tmsnrt.
|
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Indian refiners are cutting back on output while European plants are considering closures.
|
|
Apple told BuzzFeed News all its gold refiners participate in third party audits.
|
|
Indian refiners are cutting back on output while European plants are considering closures.
|
|
Australia's four refiners said they were watching the situation and would adjust runs.
|
|
Like other California refiners, it relies heavily on crude tankers arriving by sea.
|
|
Heminger said U.S. refiners already rely on ethanol to boost octane in gasoline.
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The fund will continue to maintain stakes in refiners and other downstream firms.
|
|
Still, tropical Storm Harvey, which was downgraded from a hurricane, hit refiners harder.
|
|
In theory, US refiners could use more light shale oil in an emergency.
|
|
To produce low-sulphur maritime fuel, refiners have to switch to sweet grades.
|
|
She says that's because refiners have increased capacity and current demand is weak.
|
|
Refiners that meet their obligation generate credits called renewable identification numbers, or RINs.
|
|
Refiners can't just turn on a dime when the heavy crude gets sidelined.
|
|
Some refiners short on heavy crude could take medium barrels from the SPR.
|
|
Profit margins for refiners rose to near-record levels on the market's dynamics.
|
|
Japanese oil refiners may have to stop loading Iranian crude oil from Oct.
|
|
American refiners process crude oil from Mexico, then sell it back as gasoline.
|
|
NEW DELHI (Reuters) - India's government has not told the country's oil refiners to halt their imports of Iranian crude, a government source said on Wednesday, even as most Indian refiners have cut down their imports ahead of U.S. sanctions on Iran.
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As a result, Motiva has slipped to 2335th place from ninth among the top U.S. refiners by capacity since striking out on its own, according to U.S. government data, as other refiners inked deals to take advantage of the shale boom.
|
|
China's demand for foreign crude could touch new highs as state-run refiners start up new plants and as Beijing allows more independent refiners to import crude, with the country forecast to remain a key driver of 2017 demand growth.
|
|
As a result, Motiva has slipped to 0003th place from ninth among the top U.S. refiners by capacity since striking out on its own, according to U.S. government data, as other refiners inked deals to take advantage of the shale boom.
|
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NEW DELHI (Reuters) - Indian refiners boosted imports of African crude oil in 22016 to the highest in at least five years and slightly cut their intake from Latin America as refiners benefited from changing global oil flows caused by surplus supply.
|
|
Asian refiners may end up having to pay more to buy cargoes on the spot market, especially for heavier grades typical to Middle East producers and sought-after by refiners using complex units designed to process this type of crude.
|
|
The EPA, under Pruitt, has roughly tripled the number of exemptions granted to small refiners, angering Midwest farmers and their legislative backers who say he is effectively lowering the mandate unless he forces larger refiners to make up the difference.
|
|
BEIJING/SINGAPORE (Reuters) - Chinese oil refiners raised their output to a record in 2018, led by state-run oil majors which maximized operations on firm profit-margins and private refiners which increased processing after being granted higher crude import quotas.
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|
Independent refiners like Shandong Chambroad Group have also joined, while retail interest is strong.
|
|
Refiners are getting a signal to shift the balance slightly towards distillates in 2017.
|
|
For East Coast refiners, access to the Laurel pipeline is a matter of survival.
|
|
Refiners Valero Energy and Royal Dutch Shell did not reply to requests for comment.
|
|
Refiners, especially smaller companies, have argued the biofuel laws are costly and overly burdensome.
|
|
Independent Chinese refiners in Shandong have slashed output to below half of their capacity.
|
|
Unless gasoline demand sharply increases, oil refiners may be in for another tough year.
|
|
Refiners are exempt from rotating power outages by the California Public Utilities Commission (CPUC).
|
|
These gases can be vaporized and used as fuel by some refiners, said Schremp.
|
|
Chinese refiners and traders have struggled to manage currency risks because of capital controls.
|
|
Nineteen Chinese independent refiners this week received fresh licenses to import crude for 2017.
|
|
He did not disclose the names of refiners or how much had been deposited.
|
|
Refining capacity use fell to 83.1% as refiners shut in capacity across the country.
|
|
Refiners are looking at petrochemicals to replace potentially lost demand in the transport sector.
|
|
Refiners and shipping firms have had years to prepare, but disruptions are still anticipated.
|
|
Refiners are expected to raise their gasoil output by 2.3 million bpd by 2024.
|
|
Refiners typically see profitability increase when the price of their main feedstock—oil—falls.
|
|
Increasing their tax compliance may reduce the profit margins for the refiners and blenders.
|
|
Shares in oil refiners Tesoro Corp, Valero Energy Corp and HollyFrontier Corp were down.
|
|
Joswick said he expects U.S. refiners to easily handle the increase in marine fuel.
|
|
Refiners have long requested this change, saying the biofuels program has hammered their profits.
|
|
U.S. refiners also cut their gasoline yield in an effort to stem the glut.
|
|
State-refiners and India's oil ministry did not respond to Reuters request for comments.
|
|
Refiners typically see profitability increase when the price of their main feedstock - oil - falls.
|
|
Gasoline importers and oil refiners need these credits to meet the country's biofuels mandates.
|
|
The lawmakers also requested a list of refiners who have received waivers since 2016.
|
|
If those inventories become depleted, refiners may have to look to import from elsewhere.
|
|
Several refiners in Asia said on Wednesday they were seeking alternatives to Iranian supplies.
|
|
Refiners also have to contend with other damaged infrastructure that are disrupting supply chains.
|
|
If demand stays dormant, a jump in oil prices could be devastating for refiners.
|
|
The source also said many Chinese refiners were geared toward processing Iranian crude grades.
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Of those eight, three refiners said they would load extra volumes they had requested.
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They noted refiners can avoid the cost of RINs by investing in blending operations.
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South Korea's purchases are driven by its top refiners SK Energy and GS Caltex.
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"The high-price numbers prompted U.S. refiners to lower nominations," one industry source said.
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Refiners will begin reporting earnings next week, kicking off with Valero on Oct. 26.
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Most refiners don't think the point of obligation should shift to wholesalers and retailers.
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Rising domestic demand from refiners has pushed premiums for U.S. crude higher curbing exports.
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U.S. refiners, however, are geared toward processing denser oil with a higher sulfur content.
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For an interactive graphic on Venezuelan crude exports to U.S. refiners, see: tmsnrt.rs/2S42EI5.
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But, given the experience of other refiners, he has no doubt they are circulating.
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Asian refiners may have to curtail jet fuel output due to the weakening demand.
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BP is one of the largest U.S. refiners and petrochemical producers and fuel retailers.
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Other refiners, including Texas' Valero Energy Corp, have also complained about high RIN costs.
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Refining capacity use fell to 83.1% as refiners shut in capacity across the country.
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Previously, Saudi Aramco had only dealt with China's state refiners in long-term contracts.
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NEW BIOFUELS DEAL WILL REDISTRIBUTE GALLONS EXEMPTED FROM SMALL REFINERIES TO OTHER REFINERS - CENSKY
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With just about all the other previous hurricanes, refiners came through with minimal damage.
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Flooding in Houston could likely keep some refiners shut for the week, analysts said.
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The rule in question requires refiners to blend ethanol, a renewable fuel, into gasoline.
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U.S. refiners that once were among Venezuela's largest receivers took no crude last month.
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Other refiners in Thailand include Thai Oil PCL, Bangchak Corporation PCL and Esso Thailand.
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Eventually, Midwest refiners will have to close plants if they cannot access new markets.
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U.S. refiners warned the Trump administration that tariffs on imports from Mexico could deliver a punishing blow to refiners and raise the cost of gasoline just as the U.S. driving season kicks into high gear, according to sources familiar with the discussions.
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This freedom allows state refiners, which control two-thirds of India's 0003 million barrels per day (bpd) of processing capacity, to compete on a more level playing field with less-regulated private refiners like Reliance Industries Ltd, and is encouraging investment in infrastructure.
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However, crude traders noted that most Gulf Coast refiners that buy Mexican crude are located in so-called Foreign Trade Zones, which allow them to avoid tariffs so long as the refined products are exported - though these refiners also supply U.S. markets.
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Crude traders, however, noted that most Gulf Coast refiners that buy Mexican crude are located in so-called Foreign Trade Zones, which allow them to avoid tariffs so long as the refined products are exported - though these refiners also supply U.S. markets.
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The oil industry wants the Renewable Fuel Standard, which requires refiners to add ethanol to their fuels, to be overhauled to reduce the burden on refiners, while the powerful corn lobby wants the policy to more aggressively promote the use of biofuels.
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But after a series of unexpected market moves, heavy, sour crude oil processed by U.S. refiners has become more expensive, eating up hoped-for profit windfalls before they even materialized, forcing refiners to rethink plans to invest more in heavy crude processing units.
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The move was expected to make heavy crude oil cheap as most refiners worldwide shifted to lighter crudes that yield compliant lower-sulfur fuels - and benefit complex U.S. refiners that possess greater capability to break down that heavy crude into high-margin products.
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"I expect the refiners to exit summer driving season with higher-than-usual inventories, so margins will get to the point that refiners will need to consider run cuts to balance things," Blake Fernandez, a Houston-based analyst at Scotia Howard Weil, said.
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Smaller discounts for some heavy crudes are also affecting refiners across the Gulf, Jorda said.
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But it would be wrong for Russia to assume European refiners will bear all costs.
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Waivers save refiners money because they do not need to blend biofuels or buy credits.
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Analysts said the trend would likely continue as refiners make a higher-cost summer blend.
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The rule changes are requiring massive investment as refiners cut sulphur content in their output.
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Small refiners can get exemptions from the EPA if they prove compliance causes them hardship.
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The rule changes are requiring massive investment as refiners cut sulfur content in their output.
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West Africa produces crude that is "gasoline rich," he said, important for East Coast refiners.
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Refiners typically see profits rise when crude oil, the raw material for many fuels, falls.
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Crude prices have risen 23% this year, increasing costs and squeezing margins for oil refiners.
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The U.S. is unlikely to threaten sanctions against Chinese or Indian oil refiners or banks.
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U.S. refiners have invested billions of dollars in Mexico since it opened its energy market.
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Crude prices have risen 268.7970% this year, increasing costs and squeezing margins for oil refiners.
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Lundberg cited another influence: With autumn maintenance projects wrapping up, U.S. refiners are increasing supplies.
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U.S. refiners also are finishing spring maintenance and gearing up for vacation-season gasoline demand.
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Supply disruptions in Nigeria also dented its exports, forcing Indian refiners to seek supplies elsewhere.
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The fall season is when refiners typically undergo planned maintenance, and the outages reduce supply.
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Refiners Showa Shell Sekiyu and Idemitsu Kosan Co rose 5.2 percent and 5.8 percent, respectively.
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This could boost the program's cost to oil Refiners Valero Energy Corp and Tesoro Corp.
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Refiners overall saw margins pinched in 2016 after overproduction of product early in the year.
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Meanwhile, the nation's refiners increased their activity even as demand for gasoline softened last week.
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When oil refiners go offline in early spring for maintenance, crude inventories will build further.
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Refiners are buying more scrap gold but are not seeing higher sales of bullion bars.
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Marathon, one of the nation's largest refiners, was not a major importer of Venezuelan crude.
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However, some refiners including Valero and Marathon are beginning to resume operations in some facilities.
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However, gasoline margins have rebounded this month, reducing the incentive for refiners to switch production.
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The losers: Oil refiners, which have said the requirement costs hundreds of millions of dollars.
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Many refiners, however, are reluctant to cut runs as long as they make some cash.
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Oil refiners and importers use the paper credits to prove their compliance with the mandates.
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Raw materials increased 15.5 percent, while oil refiners and chemical producers also saw solid increases.
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In 2014 Chinese refiners were thought to be running at just two-thirds of capacity.
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Refiners typically increase crude input in the final week of the year for tax reasons.
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Indian refiners have been paying 45 percent of their oil dues to Iran in rupees.
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We engage with our suppliers all over the world, including directly with smelters and refiners.
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Several refiners shut down plants ahead of the storm, disrupting supplies and pushing prices higher.
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Indian refiners also cut imports of Iranian oil last month to avoid looming U.S. sanctions.
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State refiners such as IOC have raised imports after Iran agreed to steep shipping discounts.
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Shandong is home to most of China's independent refiners, known in the trade as 'teapots'.
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The global silver benchmark is used to price contracts between producers, refiners, jewelers and fabricators.
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A handful of refiners say the law is threatening to put them out of business.
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Refiners and producers are doing wonderfully — retailers of gasoline or restaurants and end-users BEWARE.
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U.S. officials have been working with refiners in Asia to find replacements or Iranian oil.
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But their financial plight underscores deepening financial pain among small teapot refiners and crushers alike.
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He successfully pushed back when fuel refiners sought a significant change to the ethanol mandate.
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N), Trafigura, Mercuria and Occidental in addition to North Asian refiners Unipec, PetroChina, JXTG (5020.
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TOKYO (Reuters) - Japanese oil refiners may have to stop loading Iranian crude oil from Oct.
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Analysts noted that refiners have been cutting activity while U.S. crude production has kept rising.
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Refiners are pressuring lawmakers back from August recess to consider reforming the renewable fuel program.
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European refiners had to halt work for fear the contaminated crude would damage their equipment.
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These sanctions have driven away many customers of Venezuelan oil, leaving supplies for some refiners.
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The company also stresses its importance as a reliable supplier and strategic partner for refiners.
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It reflects the important competing interests of corn farmers in Iowa and refiners in Pennsylvania.
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The former presidential hopeful said that his proposal would help refiners without hurting corn growers.
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For one, U.S. refiners have the equipment necessary to process the crude oil Canada produces.
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With Chinese refinery runs increasing, refiners there are looking for crude from all potential sellers.
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The move would save some refiners a fortune but would outrage the powerful corn lobby.
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Gasoline demand remains mediocre as refiners continue to crank out more fuel, he told CNBC.
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The RFS requires refiners to blend biofuels like corn-based ethanol into the nation's fuel.
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But refiners say the forgeries are becoming increasingly sophisticated, so the problem may have grown.
|
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Other state oil refiners are also reducing crude processing as local fuel demand has tumbled.
|
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In response, BP, Shell and other large refiners have been investing in cleaner fuel technologies.
|
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U.S. refiners, who benefit from the big discount, get to lock in supplies long-term.
|
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Asian refiners will also begin shutdowns in April for spring maintenance further dampening crude demand.
|
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Healthy profits will also help the state-owned refiners to continue spending on expansion plans.
|
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With the exception of refiners, energy stocks have been battered even as oil prices improved.
|
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Halting oil Iranian imports means its many refiners will have to seek alternative supplies elsewhere.
|
|
Overall utilization rose to 93.3% in the week, highest since September, as refiners increased output.
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They sell their gold to central bank subsidiary Fidelity Printers and Refiners or private buyers.
|
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Some refiners have started blending jet fuel into the diesel pool to reduce excess supplies.
|
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The letter was also sent to regional refiners and some specialist firms, mainly in Singapore.
|
|
Refiners along the U.S. East Coast were bracing for difficulties in the next few days.
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A gasoline supply glut would pressure prices and weaken profit margins for refiners, Shepard said.
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That's because refiners have come to rely on ethanol to raise the octane of gasoline.
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The law currently requires refiners to blend 15 billion gallons of the biofuel per year.
|
|
The outcome could have implications for other refiners struggling to cope with the Renewable Fuels Standard, a law administered by the Environmental Protection Agency that requires refiners to blend biofuels into the nation's fuel supply every year, or buy credits from those who do.
|
|
NEW YORK (Reuters) - U.S. refiners warned the Trump administration that tariffs on imports from Mexico could deliver a punishing blow to refiners and raise the cost of gasoline just as the U.S. driving season kicks into high gear, according to sources familiar with the discussions.
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Changes to the nation's biofuels program announced last month surprised and angered corn growers and biodiesel producers, who say Trump promised them large oil refiners would be required to make up for the demand that has been lost from the waivers granted to smaller refiners.
|
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Retailers, automakers and refiners are among the industries that could be hit if imports are taxed.
|
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Refiners in India, Iran's second biggest oil client after China, owe almost $6 billion to Tehran.
|
|
As refiners bring in more barrels from overseas, Brent's premium over U.S. crude will eventually widen.
|
|
Refiners had been running full-tilt for much of 13, encouraged by strong demand for distillates.
|
|
So as refiners churn out more diesel and jet fuel, they're adding to the gasoline glut.
|
|
Indian refiners are investing billions of dollars to upgrade their plants for producing Euro VI fuels.
|
|
PetroChina shipped gasoline from domestic refiners to Nigeria for the first time in the first quarter.
|
|
He said that the refiners have performed well while the rest of the sector got hammered.
|
|
Two other Japanese refiners, Idemitsu Kosan Co and Showa Shell Sekiyu are also planning to merge.
|
|
Border adjustment has attracted opposition not only from retailers, but also from oil refiners and automakers.
|
|
But oil refiners doubt that summer demand will be strong enough to boost their profit margins.
|
|
That double whammy is prompting Asian refiners to move swiftly, with South Korea leading the way.
|
|
Unhappy with Tehran, India's oil ministry has asked state refiners to cut imports of Iranian oil.
|
|
Fuel importers and refiners must blend the renewable fuels or purchase credits from others that have.
|
|
U.S. refiners usually switch to the cheaper, higher-volatility winter blend of gasoline by mid-September.
|
|
You could have refiners coming offline, just as Middle East production comes back online, including Iran.
|
|
"Despite refiners' request for more crude, the decision was made to maintain cuts," the source said.
|
|
Those refiners, with multiple facilities on the Gulf Coast, rely more on imports from Latin America.
|
|
Refiners in the country have placed orders to buy 9 million barrels from Iran in November.
|
|
Refiners Valero, Marathon Petroleum Corp, Royal Dutch Shell and Chevron were not immediately available to comment.
|
|
Last week, India bought its first ever U.S. crude and its refiners plan to buy more.
|
|
And now, product prices are still high enough to prompt Chinese refiners to export refined fuels.
|
|
However, the country's refiners since June have cut purchases of Iranian crude ahead of U.S. sanctions.
|
|
Crude prices CLc1 have risen 23% this year, increasing costs and squeezing margins for oil refiners.
|
|
As a result, independent U.S. refiners reported their worst quarterly profits in five years in April.
|
|
Independent refiners, often known as teapots, typically carry out their routine repairs later in the summer.
|
|
Venezuela's weak oil exports are one reason why U.S. refiners are shifting away from heavy crude.
|
|
State-run oil refiners also rose after Indian Oil Corp announced a hike in petrol prices.
|
|
With no sign of those inventories easing much, refiners and shippers have decided to cut volumes.
|
|
In February, he suggested shifting the responsibility for mixing biofuels into gasoline from refiners to blenders.
|
|
Most northern U.S. refiners are not reporting significant problems, but the extreme cold still poses threats.
|
|
That is the kind of crude oil a majority of U.S. refiners typically do not consume.
|
|
" Valero Energy Corporation: "I think there is going to be a big squeeze in the refiners.
|
|
That weighed on first-quarter earnings for major independent refiners Valero Energy Corp and Phillips 66 .
|
|
It was the latest attempt by Monroe and other refiners to shift compliance onto fuel blenders.
|
|
Despite steady demand, U.S. refiners are still battling weak margins due to stubbornly high gasoline inventories.
|
|
Refiners perform maintenance to keep units operating reliably and safely, protecting themselves from costly unplanned outages.
|
|
The region's refiners are fighting to survive, as they rely on foreign waterborne crude for supply.
|
|
At the refiners, she will be helping to develop its international, federal and state advocacy efforts.
|
|
If Gartman was forced to invest in oil, he would choose refiners rather than the producers.
|
|
Two oil refiners will spend $85033 million to settle federal pollution-related charges made against them.
|
|
The U.S. refiners have also secured more crude from West Africa as a replacement, traders said.
|
|
However, gasoline and distillate inventories extended their declines even as refiners ramped up production, it said.
|
|
These crudes give China a slate that is both heavier and sweeter than other Asian refiners.
|
|
Refiners have until early 2019 to comply with all or a portion of the 2017 obligation.
|
|
That weighed on first-quarter earnings for major independent refiners Valero Energy Corp and Phillips 66.
|
|
The RFS requires refiners to blend enormous amounts of biofuel, mostly corn-based ethanol, into gasoline.
|
|
But it also has obliged refiners to cut fuel production, thus further cutting demand for crude.
|
|
Units that help meet that demand are the ones that refiners want to get working quickly.
|
|
Meanwhile, two of the most disadvantaged refiners under the program are headquartered in Pennsylvania, he said.
|
|
API represents numerous facets of the oil industry, including drillers, pipeline companies, refiners and fuel sellers.
|
|
Officials at other state refiners Hindustan Petroleum and Bharat Petroleum Corp confirmed receiving the SBI letter.
|
|
The Philadelphia area has one of the largest concentrations of fuel refiners on the East Coast.
|
|
They, and other refiners such as HollyFrontier Corp have said regulatory costs are outpacing labor costs.
|
|
Morgan Stanley currently estimates U.S. refiners' 2018 earnings per share to beat estimates by 20 percent.
|
|
Gulf Coast refiners, which can process up to 0003 million bpd, traditionally preferred heavy, sour crudes.
|
|
Investors bought drillers, refiners and other energy companies as the three-week rise in crude continued.
|
|
U.S. refiners processed 22017 million barrels per day (bpd) of oil in the week to Sept.
|
|
This stricter standard typically costs refiners several cents more to refine from crude oil to gasoline.
|
|
Oil majors Shell and Total are among the European refiners that have resumed buying Iranian oil.
|
|
Analysts estimate the country's refiners will likely ship 513 to 3 percent less diesel in 2016.
|
|
The Small Refiners Coalition said the Obama administration had wrongly denied waivers to firms like CVR.
|
|
The main beneficiaries of lower oil prices are the refiners who use crude as an input.
|
|
PES and other East Coast refiners have been forced to return to refining West African crudes.
|
|
Later in the afternoon, the officials met with representatives from oil refiners including Marathon Petroleum Corp.
|
|
In India, another major buyer of Iranian oil, refiners hope they can continue importing Iranian oil.
|
|
Companies opposed to any intervention by the CER include refiners Marathon Petroleum Corp and Motiva Enterprises .
|
|
Sanctions have forced Citgo and other U.S. refiners to seek crude oil supplies from other nations.
|
|
" Oil refiners said they were disappointed at the continuance of a policy they have called "rigged.
|
|
If refiners recover the fastest, he says companies involved with crude oil will perform the worst.
|
|
But the EPA can waive refiners obligations if they prove compliance would cause them financial distress.
|
|
In China, new refiners are exporting as much as they can, so they're flooding the market.
|
|
U.S. Gulf Coast gasoline spot prices have risen to two-year highs as refiners cut output.
|
|
Starting in 2015, the facility likely began claiming yet another tax handout specifically for independent refiners.
|
|
The run rates were lower compared with state-owned refiners that were operating at 70 percent.
|
|
Higher oil prices could raise costs for end users but boost earnings for producers and refiners.
|
|
Analysts said some refiners had not been able to buy as much oil as they wanted.
|
|
Refiners have that capability and that's precisely why they are currently the obligated party under law.
|
|
That comes despite some refiners' recent efforts to increase fuel oil yields to meet summer demand.
|
|
Refiners went through a transformation that enabled them to take in heavy, sour crudes from overseas.
|
|
US Treasury Secretary Steven Mnuchin hinted that refiners could turn to Saudi Arabia for heavy crude.
|
|
Many refiners upgraded their facilities in recent years to allow them to process lighter oil grades.
|
|
And refiners looking to lower their cost of compliance with the RFS could do so easily.
|
|
Prices dropped after the EPA expanded its use of waivers freeing small refiners from their obligations.
|
|
Unsold crude cargoes for loading in August have piled up as Asian refiners head for maintenance.
|
|
Oil refiners use the credits to meet government requirements for use of renewable fuels including ethanol.
|
|
IOC, along with other refiners in India, have halted Iranian oil imports because of U.S. sanctions.
|
|
But crude runs are now expected to head lower as refiners enter the peak maintenance season.
|
|
The move comes after domestic inventories of Venezuela's synthetic crude jumped after U.S. refiners halted purchases.
|
|
Simple refiners processing heavy crudes will face headwinds as a result of the collapse of HSFO margins, while complex refiners capable of producing lighter, low-sulfur fuels will see a boost in margins as the fourth quarter approaches, said Sri Paravaikkarasu, director at Singapore-based consultancy FGE.
|
|
Simple refiners processing heavy crudes will face headwinds as a result of the collapse of HSFO margins, while complex refiners capable of producing lighter, low-sulphur fuels will see a boost in margins as the fourth quarter approaches, said Sri Paravaikkarasu, director at Singapore-based consultancy FGE.
|
|
While these developments are significant for oil producers and fuel refiners, consumers are unlikely to notice much of this at the pump since refiners will wind up eating most of the cost as their profits are squeezed by a product glut and the price of crude.
|
|
In a letter to Environmental Protection Agency administrators seen by Reuters on Monday, Icahn said "a number" of refiners could go bankrupt if the playing field is not leveled to stop disfavoring independent refiners such as CVR Energy, in which Icahn owns an 82 percent stake.
|
|
Sinopec's bumper results also come as state oil refiners have exported record volumes of diesel and gasoline, grabbing a bigger share of the market as smaller, independent refiners struggle with tough new taxes, a government-led environmental crackdown and crippling costs from the higher crude oil.
|
|
But under the Renewable Fuel Standard—a law passed, under George W. Bush, to promote the use of ethanol and other biofuels—refiners like CVR are forced either to blend ethanol into their products or to purchase credits, known as Renewable Identification Numbers, from refiners that do.
|
|
The changes are meant to reduce the prices of credits that oil refiners buy if they can't blend ethanol into their fuels — a win for refiners — and to allow higher concentrations of ethanol to be sold year-round — a win for the ethanol and corn industries.
|
|
Pruitt also promised in his Thursday letter that total renewable fuel volume mandates would be at or above the levels previously proposed and he would not shift the obligation for compliance away from fuel refiners and down to fuel distributors, a proposal some refiners were pursuing.
|
|
A number of independent refiners, like Valero Energy Corp, CVR Energy and PBF Energy are also vocally opposed to the regulation's requirement that refiners blend the biofuels or purchase credits from rivals that do - which they say costs them hundreds of millions of dollars each year.
|
|
The changes are meant to reduce the prices of credits that oil refiners buy if they can't blend ethanol into their fuels -- a win for refiners -- and to allow higher concentrations of ethanol to be sold year-round -- a win for the ethanol and corn industries.
|
|
He added that the agency could also look at changes that would help the biofuel industry, like expanding the sale of higher-ethanol gasoline blends and by requiring some refiners to blend more ethanol to compensate for volumes lost under an EPA waiver program for small refiners.
|
|
That is in large part because Congress in 215 mandated that oil refiners blend ethanol into gasoline.
|
|
Paying for data and building expensive systems to track contributions would make data refiners much less profitable.
|
|
U.S. refiners could be helping to set the stage for another day of reckoning for oil prices.
|
|
Merchant refiners such as Valero and bankrupt Philadelphia Energy Solutions say the costs have become too burdensome.
|
|
However, US Gulf Coast refiners can't solely rely on high-quality shale oil, which is very light.
|
|
Refiners have been scrambling for replacement barrels in a bid to avoid cutting the volumes they process.
|
|
That was the case after Hurricane Katrina in 2005, which shuttered major U.S. oil producers and refiners.
|
|
Charterers in April included U.S. refiners PBF Energy, Marathon Petroleum and Valero, the Refinitiv Eikon data showed.
|
|
Even the Angolan market, which tends to be dominated by Chinese refiners, has been slow to move.
|
|
Many refiners, however, are still not expecting a real crude shortage, largely due to ample alternative supplies.
|
|
SUPPORTIVE ELEMENTS Besides supply losses, strong demand from refiners is also providing support for the physical market.
|
|
The refiners are reportedly worried about supply shortages in light of U.S. sanctions on Iran and Venezuela.
|
|
Refiners, along with some academics, have dismissed the farm belt's contention that waivers have decimated ethanol demand.
|
|
Under the RFS, refiners must blend certain volumes of biofuels or buy RINs from those that do.
|
|
According to the U.S. Corn Refiners Association, representing manufacturers including Archer Daniels Midland Co and Cargill Inc.
|
|
U.S. regulations require refiners to blend biofuels into their gasoline or buy credits from those that do.
|
|
But as the program has grown, refiners that lack sufficient blending infrastructure have complained of rising costs.
|
|
Cenovus's business depends more on spot crude prices, as it mainly produces and sells to other refiners.
|
|
Refiners like Valero, Phillips 66 and Marathon Petroleum Corp process crude into diesel, gasoline, and other products.
|
|
Smith said Wednesday's data marked an inflection point as refiners exit the peak of refinery maintenance season.
|
|
Refiners have profited in recent months as the spread widened between U.S. crude and Brent futures prices.
|
|
Nearly 2000 small refiners have been granted quotas to use imported oil or import oil directly themselves.
|
|
On the other hand, Jefferies is seeing buying opportunities in the energy sector -- specifically in the refiners.
|
|
Gasoline prices moved to a substantial premium over diesel and refiners responded by switching their production plans.
|
|
Both hedge funds and refiners appear to have over-estimated the growth in gasoline demand in 2016.
|
|
The panel in 2015 rejected a challenge by two sugar refiners to the previous U.S.-Mexico pact.
|
|
Refiners make money by exploiting the difference between the price of oil and the price of gasoline.
|
|
U.S. refiners have been encouraged to run at high rates to take advantage of strong diesel margins.
|
|
This can hurt refiners that do not have blending or retail outlets and need to buy RINs.
|
|
But independent refiners have complained as the price of the credits at times has exceeded $1 each.
|
|
As many as 150,000 American jobs are at danger if U.S. refiners are forced out of business.
|
|
U.S. refiners have responded by increasing crude processing and distillate production to unprecedented levels to meet demand.
|
|
Consultant JBC Energy said refiners could process 83 million bpd of crude by the end of 2017.
|
|
Many U.S. refiners, however, invested in making their refining capabilities highly complex, particularly on the Gulf Coast.
|
|
The impact of sanctions on PDVSA would ripple across oil markets, forcing refiners to buy alternative supplies.
|
|
American sugar refiners were being beaten in the refined sugar market by more efficient Mexican sugar producers.
|
|
For refiners, RIN-related financial exposure is growing and often exceeds labor costs, maintenance costs, and logistics.
|
|
U.S. refiners are in the midst of their worst year since the shale boom began in 246.
|
|
Instead, shale production from North Dakota has been shrinking and those refiners have resumed buying imported crude.
|
|
Refiners in India are the world's third-biggest oil importer and Iran's top oil client after China.
|
|
U.S. refiners are in the midst of their worst year since the shale boom began in 2011.
|
|
Last October, Trump deliver a long-sought political victory to the Farm Belt but angered oil refiners.
|
|
The record volumes were a result of strong imports from China's private refiners, often known as "teapots".
|
|
U.S. refiners are in the midst of their worst year since the shale boom began in 218.
|
|
Refiners built up distillate stocks over the summer as they pushed their plants to pump out gasoline.
|
|
U.S. refiners, which source heavy crude from Canada, have also benefited from cheaper oil from the region.
|
|
Refiners also wanted to offset the impact of rising global oil prices and a weak Indian rupee.
|
|
This came as India allowed state refiners to import Iranian oil if Tehran arranges and insures tankers.
|
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Oil refiners Idemitsu Kosan and Showa Shell Sekiyu KK ended down 4.5 percent and 3.8 percent, respectively.
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The program mandates that fuel refiners blend certain levels of biofuels into their standard gasoline and diesel.
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For years, Aramco has been a regular crude supplier to Indian refiners via long-term crude contracts.
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Physical barrels will be sold from stockpiles to refiners and reported inventories should start to decline rapidly.
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Marathon and other refiners process heavy crude, sourced from countries like Canada, to make petroleum and fuel.
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Meanwhile, oil refiners like Exxon and Chevron that won the "hardship" exemptions have had multibillion dollar profits.
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U.S. refiners have an incentive to switch away from maximizing gasoline production and toward making more distillates.
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For instance, in 2015, Swedish refiner Preem and Poland's two refiners began diversifying and taking Saudi crude.
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Many refiners loathe the RIN system, but others in the petroleum industry benefit from high RIN prices.
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The refiners point out that the credits are sold in private transactions that they say lack transparency.
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Andrew Lipow, president of Lipw Oil Associates, says American refiners would not have trouble replacing Venezuelan supplies.
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Asian buying, particularly competition between independent "teapot" refiners and Chinese state-run Unipec, is another key support.
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HIGH-OCTANE CONCERNS Refiners who plan on cutting sulfur must also contend with a loss of octane.
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Refiners generate the credits — known as Renewable Identification Numbers, or RINs — when they blend biofuels into gasoline.
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U.S. refiners have been using more of that abundant oil to manufacture diesel, gasoline and jet fuel.
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The government is reportedly allowing state refiners to use Iranian tankers and insurers to import Iranian crude.
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That has saved refiners money but angered the corn lobby, which argues the practice erodes biofuel demand.
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In India, refiners have started a search for alternative supplies but the government declined to comment officially.
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China's northeastern province of Shandong is home to the majority of the country's independent crude oil refiners.
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In addition to their lobbying, refiners waged a public campaign to dissuade Americans from eating raw sugar.
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Between security fears and erratic supply, refiners eventually stopped attempting to buy from the North African country.
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Independent refiners have also exported their first gasoline cargoes, contributing to the rise in China's fuel exports.
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In the meantime, Russian, European and Middle Eastern refiners may need to scramble and make expensive adjustments.
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And Chinese refiners say there are alternative suppliers, including Russia, Saudi Arabia and exporters in West Africa.
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Currently, refiners are required to blend around 15 billion gallons of ethanol into the nation's fuel annually.
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Some European refiners might slash their Iranian imports, especially those with large interests in the United States.
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That's because its smallest refiners and domestic banks have little or no exposure to the United States.
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While others have closed, major refiners outside Los Angeles, California, have curtailed production because of lackluster demand.
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Refiners are shifting to low-sulfur crudes to produce IMO-compliant fuel oil for shippers, another said.
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While others have closed, major refiners outside Los Angeles, California, have curtailed production because of lackluster demand.
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Over the past two years, the Trump administration has routinely granted small refiners exemptions from the mandate.
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For its oil trading division, and for other trading houses and refiners, there is something to celebrate.
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Mnuchin said he's been working "closely" with US refiners and anticipates "very modest impacts" for the industry.
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It could also decrease competition and leave the remaining players – the refiners – able to raise prices accordingly.
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Tropical Storm Harvey, which has been downgraded from a hurricane, hit oil refiners harder than crude producers.
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It could take refiners in the Houston area 14 to 17 days to fully recover, Lipow estimated.
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Other companies expected to be impacted include those in the insurance sector, auto manufacturers and oil refiners.
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Recently the central government has also tightened scrutiny over tax matters of independent refiners, known as teapots.
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|
The EPA has tried to balance farmers' interests with those of refiners, without a lot of success.
|
|
Saudi Aramco is set to boost market share by signing supply deals with non-state Chinese refiners.
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|
The price rise will benefit refiners that have spent billions of dollars gearing up for the change.
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|
"Those biggest refiners and firms [who do business with Iran] are going to pull back significantly and smaller traders, smaller refiners, with less exposure to US law enforcement will step in and buy Iranian oil," she said, pointing to Chinese companies that have served similar functions in the past.
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While Sinopec's centralization plan impacts the independent refiners, the change could serve as an unintended impetus for large independents to step up investments in logistics to win fuel customers outside the state refiners, said Zhang Liucheng, vice president of Shandong Dongming Petrochemical Group, the country's largest independent refiner.
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He said the group would urge changes that could lower costs of the RFS to refiners, including potentially placing a price cap on the blending credits at the center of the program, or by shifting the responsibility for blending fuels off of refiners and further down the supply chain.
|
|
U.S. refiners have lined up larger supplies from Canada, Iraq and Colombia since Washington in January began choking off the flow of dollars to Venezuela's socialist government by barring transactions with PDVSA, Venezuela's state oil company and once among the top three providers of heavy crude to U.S. refiners.
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|
"Excessive demands from U.S. producers and refiners have impeded the ability to reach a solution," the ministry said, adding that U.S. negotiators continued to press for limits on Mexican raw sugar exports for U.S. refiners as well as ending "all competition" from Mexican refined sugar in the U.S. market.
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But it's still a very important player for U.S. refiners who use substantial volumes of Venezuelan heavy crude.
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This leaves simple refiners that can't easily clean sulfur from petroleum products at a risk of losing out.
|
|
"Chinese refiners have been hesitant to take US crude given the overhang of potential tariffs," said Rabobank's Fitzmaurice.
|
|
Gasoline and diesel prices have been rising even faster than crude to encourage refiners to maximize crude processing.
|
|
Instead, crude stocks rose last week as refiners cut output, amid a drawdown in gasoline and distillate inventories.
|
|
Under the RFS, refiners must earn or purchase blending credits to prove they are complying with the regulation.
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|
Fidelity Printers and Refiners is the sole buyer of all gold produced in Zimbabwe, irrespective of its origin.
|
|
The refiners are big foreign crude buyers in a country that is now the world's largest oil importer.
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|
ESPO is one of the most actively traded crude oils in Asia, and is popular among Chinese refiners.
|
|
There were also reports oil producers and refiners in crisis-struck Venezuela were struggling to keep output up.
|
|
Halting supplies of tainted oil, which can corrode refining units, has pushed some refiners to find other supplies.
|
|
Soon after that, many refiners shut capacity due to weak profits because of a big glut in diesel.
|
|
Indian fuel retailing is dominated by state refiners - Indian Oil Corp, Bharat Petroleum Corp and Hindustan Petroleum Corp.
|
|
Phillips 66, like other East Coast refiners, built rail terminals to unload Bakken crude flowing from North Dakota.
|
|
But purchases by new private refiners Hengli Petrochemical and Zhejiang Petrochemical for test operations kept import levels elevated.
|
|
Guy Adami was a buyer of Valero on the notion the refiners have finally turned to the upside.
|
|
Refiners geared toward lower diesel grades will out as the world's biggest diesel consumer moves toward cleaner fuel.
|
|
Earlier Indian Oil Corp and Bharat Petroleum Corp, both state refiners, had purchased the U.S. oil through tenders.
|
|
Struggling with high crude prices and a weak rupee, Indian refiners are preparing to cut back crude imports.
|
|
Cheap crude has led refiners to produce more fuel worldwide, adding to a market already bloated with supply.
|
|
Stephanie Link, on the other hand, doesn't agree that the refiners are the best bets in the space.
|
|
The profit margin refiners get for diesel, known as the diesel crack, fell to a two-month low.
|
|
" HollyFrontier Corp: "I am not as big of a fan of the refiners as so many others are.
|
|
The ships are going to be sitting in the Gulf and hovering around until the refiners take shipments.
|
|
In Germany, the main refiners served by Druzhba are Rosneft's Schwedt, Royal Dutch Shell, Eni and Total's Leuna.
|
|
China's teapot refiners, of which there are now almost 40, were only given oil import permits from 2015.
|
|
U.S. Independent refiners such as Phillips 66 say the system is financially burdensome and targets the wrong group.
|
|
Oil refiners without significant retail arms, including Valero, reported paying a record amount for these credits last year.
|
|
Saudi Aramco is poised to bolster its market share by signing supply agreements with non-state Chinese refiners.
|
|
The sanctions aim to block U.S. refiners from paying into PDVSA accounts controlled by Venezuelan President Nicolas Maduro.
|
|
Historically, gasoline prices weaken as autumn begins in September and refiners start to switch to winter grade gasoline.
|
|
The oil ministry has also asked state refiners to consider setting up petcoke gasifiers, a government source said.
|
|
The article said retailers and oil refiners have warned that the proposal would force them to raise prices.
|
|
The unexpected price increase prompted some Asian refiners to trim imports and seek substitutes in the spot market.
|
|
A narrowed discount for Canadian crude prices makes rail shipments to the Gulf Coast less economic for refiners.
|
|
S. refiners have added over 217,0003 barrels a day of capacity since January 2000 and they're using it.
|
|
The inventory build is in part due to refiners ramping up production earlier than usual, in Kilduff's view.
|
|
U.S. refiners are beginning to restart units after seasonal maintenance work ahead of the high demand summer months.
|
|
The price of RINs has surged in recent years, meaning refiners without blending facilities have faced higher costs.
|
|
M.K. Surana, chairman of Hindustan Petroleum, said refiners may use that time to step up purchases from Iran.
|
|
The gasoline oversupply has presented refiners with the unusual dilemma of whether to switch summer output toward distillates.
|
|
However, analysts on Monday told CNBC that lackluster gasoline demand threatens to leave refiners with large fuel stockpiles.
|
|
China's independent refiners may be butting up against state-imposed import quotas following January and February's high shipments.
|
|
Despite Brent crude trading relatively cheaply in the low $40s per barrel, the outlook for refiners remains gloomy.
|
|
UNITED STATES INSTRUCTS FOREIGN TRADING FIRMS, REFINERS TO STOP DIRECT, INDIRECT OR OIL SWAP DEALS WITH VENEZUELA - SOURCES
|
|
Typically, demand exceeds the pipeline's space, forcing refiners and traders to supplement delivery with tanker shipments or imports.
|
|
That buying frenzy fueled criticism among refiners who complained about the additional cost of complying with government mandates.
|
|
This is the latest push by refiners to move the responsibility of complying with the program further downstream.
|
|
Of that total, 2.7 billion barrels was crude oil, which refiners almost always use to make other products.
|
|
The field's proximity to Gulf Coast refiners and export ports make it that much more attractive, she said.
|
|
The big state refiners say they have spent billions of dollars upgrading facilities to make the cleaner fuels.
|
|
Those who lack blending capacity must buy compliance credits from other refiners or other companies that blend fuel.
|
|
By separating the two types of fuel, Cornyn believes generic D6 RIN prices would tumble, saving refiners money.
|
|
Iraq's Basra Heavy crude grade has seen growing demand from Indian refiners since it was introduced last year.
|
|
The gasoline oversupply has presented refiners with the unusual dilemma of whether to switch summer output towards distillates.
|
|
Indian refiners, for instance, are instead snapping up the next cheapest alternative, Iraqi Basra Heavy, the trader said.
|
|
IOC chairman Sanjiv Singh said the government had so far not directed refiners to cut imports from Iran.
|
|
The EPA said last week that it did not believe shifting the blending requirement off refiners was appropriate.
|
|
"The two refiners decided to buy Iranian Mix as it suits their refineries," said one of the sources.
|
|
Refiners' losses in producing a barrel of fuel oil more than doubled in October from the previous month.
|
|
Egina, heavy sweet crude from a new offshore field, has proved consistently popular among refiners in northwest Europe.
|
|
U.S. refiners rely on cokers to break down residual oils into other refined products, including gasoil and naphtha.
|
|
The move is in line with other South Korean refiners that have replaced Iranian oil with similar imports.
|
|
Refiners are required to blend biofuels into the nation's gasoline pool, but small operations can apply for exemptions.
|
|
But it's costing those refiners more to buy the crude oil they need to make those new gallons.
|
|
Another factor is supply bottlenecks — especially in West Texas, where pipelines to Gulf Coast refiners are backing up.
|
|
Icahn's plan would have shifted responsibility for blending biofuels from refiners to companies that operate retail gas stations.
|
|
The RFS requires fuel refiners to blend certain amounts of biofuels like ethanol and biodiesel into their products.
|
|
In the last year, U.S. refiners have been fairly successful in matching gasoline production and stockpiles with demand.
|
|
But costs have risen in recent years and become a pressure point for independent refiners and fuel importers.
|
|
That means Asian and U.S. refiners would be searching for replacement supplies at the same time, Lipow said.
|
|
In Asia, the world's biggest oil consumer region, refiners are suffering from high prices and ample fuel supplies.
|
|
Any substantive changes would potentially punish refiners who have already invested millions to comply with the new rules.
|
|
Discounts on Bakken oil are nothing new, due to capacity constraints that forced refiners to rely on rail.
|
|
The delays - and the costs associated with them - could put a chill on the refiners' demand for now.
|
|
New regulations under consideration include limiting trading in the credits to refiners and fuel importers, the official said.
|
|
The deal is the biggest in the sector since 2011, when refiners Holly Corp and Frontier Oil merged.
|
|
Some refiners say they filed their applications far earlier than April, and say the EPA is already late.
|
|
Russia's flagship Urals crude oil is one of the grades preferred by China's independent refiners, known as teapots.
|
|
Refiners say the law is putting them out of business, but ethanol interests have vehemently opposed any changes.
|
|
That portion of the rule is expected to please refiners, many which have protested the expansion of E85033.
|
|
Among other headwinds for refiners in the second quarter, global oil prices hit six-month highs in June.
|
|
Now refiners argued that such sensory methods were ripe for abuse because they depended on a subjective appraisal.
|
|
Refiners have so far been unsuccessful in convincing the administration of President Donald Trump to reform the program.
|
|
Oil refiners worldwide are slashing production or considering cuts as the pandemic causes the evaporation of fuel demand.
|
|
"The inventory gains came despite strong demand for crude oil from refiners and gasoline from drivers," he said.
|
|
California requires refiners and other distributors to meet progressively declining targets of carbon in their fuels through 2030.
|
|
UBS did not comment on counterfeit bars, but said it only sells gold processed by LBMA-accredited refiners.
|
|
This means Chinese refiners will look for other suppliers, and more of these will be offering lighter crudes.
|
|
Good delivery refiners are those accredited by the LBMA and supply the vast majority of the world's gold.
|
|
Some local refiners including Indian Oil Corp and Hindustan Petroleum Corp have started making VLSFO to meet demand.
|
|
The Trump administration has roughly quadrupled here the number of waivers it has handed out to small refiners.
|
|
As a result European refiners are more fussy and buy crude at what they consider a fair price.
|
|
In China, alumina prices have soared as Beijing's crackdown on heavy industry has shuttered some refiners, tightening supplies.
|
|
Many refiners shut down after winter for maintenance, resulting in lower orders for crude, their most important feedstock.
|
|
Refiners' margins have fallen this year as high fuel inventories drag down prices for products such as gasoline.
|
|
"Higher crude prices impact the profitability of oil refiners, hence they are a bit under pressure," Singhi said.
|
|
"India also wants to increase the intake," Quevedo said after a meeting with Indian refiners in New Delhi.
|
|
Falih said Aramco was also looking at buying stakes in existing major refiners and expansion projects in India.
|
|
That is good for Bakken producers, but makes paying for costly rail too expensive for West Coast refiners.
|
|
The program has long been criticized by refiners, especially smaller companies that lack the ability to blend ethanol.
|
|
By 2022, refiners will have to blend in 36 billion gallons of renewable fuels or face steep fines.
|
|
Indian refiners' crude processing declined about 203% in September from a year ago, government data showed on Tuesday.
|
|
The U.S. Energy Information Administration can waive refiners' obligations if they prove compliance would cause them financial distress.
|
|
India primarily imports palm oil from Indonesia and Malaysia, which are members of the ASEAN group, refiners said.
|
|
The RFS mandates how much ethanol and other biofuels refiners are required to mix into the fuel supply.
|
|
They sell those credits to smaller merchant refiners that don't have the capacity to blend biofuels into gas.
|
|
The system inherently disadvantages merchant refiners like CVR Energy, in which Icahn Associates holds an 82 percent stake.
|
|
Refiners are responsible for complying with this mandate, which is tracked with credits called Renewable Identification Numbers (RINs).
|
|
The deeper the discount, the easier it is for U.S. crude producers to export oil to refiners worldwide.
|
|
Producers sell all their gold to the central bank's subsidiary Fidelity Printers and Refiners, which then exports it.
|
|
This marginal gain came as refinery runs rose and refiners also looked to build inventories ahead of winter.
|
|
Prior to those rules, refiners and producers voluntarily invested in thicker, safer tank cars known as CPC-1232s.
|
|
Last month, PDVSA began tests to reshuffle crude production to favor exports of grades favored by Asian refiners.
|
|
State-run Saudi Aramco has cut February term crude supplies to refiners in India and Southeast Asia, but it kept February supplies to most North Asian refiners at full volumes for a second month, trade sources said, indicating it will have to continue cutting exports to Europe and the United States.
|
|
This year, high production and ample supplies of shale and heavy Canadian oil have made U.S. refiners very profitable.
|
|
Indian refiners were interested in buying West Karun grade, a blend of oil from 4-5 reservoirs, he said.
|
|
The 350-mile (560-km) Laurel pipeline connects Philadelphia area refiners to the Pittsburgh market, located in Alleghany county.
|
|
Icahn said he opposes the regulation because it stresses refiners' finances and prevents them from investing in their facilities.
|
|
"Here's the bottom line: the world is a mess and that's great for oil producers and refiners," Cramer said.
|
|
A weaker oil price tends to be a boon to refiners, who can profit from more generous refining margins.
|
|
The oversupply has led to so-called run cuts, in which refiners trim the amount of crude they process.
|
|
UNEP, the African Refiners Association (ARA), and health campaigners have been pressing governments for years to improve fuel quality.
|
|
That boosts profit margins industry-wide, even for refiners that are not directly involved in the trade, he added.
|
|
It visited several independent refiners in Shandong, said a purchasing executive with one independent refiner who met Rosneft officials.
|
|
Refiners have been trying to offset this in recent days by buying U.S. domestic heavy and sour crude grades.
|
|
The news lifted global oil prices to a six-month high and left refiners in Europe scrambling for supplies.
|
|
China's largest oil refiners, Sinopec and China National Petroleum Corporation (CNPC), may also stop importing Iranian oil in November.
|
|
Refiners such as Valero Energy Corp and Phillips 22015 typically look for big price rallies to sell future output.
|
|
The rest comes from Gulf Coast refiners, via the Colonial and Plantation pipelines, and imports from Europe and Canada.
|
|
The state refiners hope that the improved flexibility will boost refining profit margins toward the levels of private firms.
|
|
Canadian shippers fear U.S. refiners like BP Plc and ExxonMobil Corp will snap up the bulk of Mainline capacity.
|
|
JXTG shares ended down 2.4 percent, while other refiners were up and the Nikkei 225 closed down 0.3 percent.
|
|
The government has excluded independent plants this year from exporting refined fuel, having granted quotas only to state refiners.
|
|
Refiners are required to blend biofuels into the nation's gasoline pool or buy credits to fund those who can.
|
|
U.S. sugar refiners say Mexico's exports are subsidized, undercutting their business and that the agreement failed to stop dumping.
|
|
Some refiners have outlined plans to use alternative supplies, but analysts say other routes cannot completely fill the shortfall.
|
|
Under the current law, refiners will have to blend 36 billion gallons of renewable fuels into gas by 2022.
|
|
In addition, some refiners have to revamp or set up new gasoline treaters, hydrogen production and sulfur recovery units.
|
|
"All refiners are looking for Urals or a Urals replacement," said a third trader in an international trading firm.
|
|
He cited rising U.S. crude exports and refiners' increasing ability to process the type of crude produced from shale.
|
|
In addition, the refiners ease local fuel shortages, part of daily life due to Nigeria's inefficient state-owned refineries.
|
|
Pruitt's selection raised expectations that the Trump administration may change the program to make it less costly for refiners.
|
|
"Those costs are basically a wash" for refiners, said Scott Irwin, an agricultural economist with the University of Illinois.
|
|
What this shows is that Saudi oil prices are still being discounted for Asian refiners, relative to past experience.
|
|
The organisation's members have been forced to discount their selling prices to protect their prized relationships with Asian refiners.
|
|
Many petroleum refiners shut down after winter for maintenance, resulting in lower orders for crude, their most important feedstock.
|
|
"Asia refiners have already started to pull back ... and there are reports of cargoes struggling to sell," they added.
|
|
Indian refiners also cut imports of Iranian oil purchases last month in a sign they are preparing for November.
|
|
Polish oil refiners PKN Orlen and Lotos as well as pipelines operator PERN were not immediately available to comment.
|
|
Merchant refiners that lack adequate blending capacity are forced to buy compliance credits in a thinly traded, opaque market.
|
|
Damage assessments at four Corpus Christi, Texas, area oil refineries were underway, with refiners there looking to restart soon.
|
|
They had fallen as much as 2 percent on Thursday as refiners in the path of Harvey shuttered production.
|
|
The contract allows Asian refiners to better evaluate the economics of U.S. crude compared to oil elsewhere, Chen said.
|
|
PDVSA is seeking to sidestep the restrictions by asking major buyers, including U.S. refiners, to renegotiate contracts, sources said.
|
|
Critics of the change say that oil refiners regain the added costs in the price of gasoline they sell.
|
|
And another ten private refiners will shut between April and June, data from energy consultancy JLC's own survey showed.
|
|
It was not immediately clear which banks have denied letters of credit or if other U.S. refiners are affected.
|
|
Contracts with refiners contain some limited flexibility to vary the volume supplied each month which allows for some adjustment.
|
|
Analysts warn that refiners risk worsening a fuel glut by running their facilities so hard amid tepid gasoline demand.
|
|
With refiners also heading into their maintenance season, it also possible that crude imports will moderate in coming months.
|
|
Executives at some of China's top independent refiners outlined to Reuters their plans to diversify to endure these changes.
|
|
Monroe, like other merchant refiners, has also taken a hit from rising costs to meet U.S. annual biofuels requirements.
|
|
Opponents argue that this would unfairly hurt isolated East Coast refiners who struggle to find additional markets for products.
|
|
However, lower purchasing prices from Polish refiners forced Mercuria to cancel its only oil contract with Surgutneftegaz in 2016.
|
|
State-run Indian refiners have bought a total 7.85 million barrels of oil from the United States so far.
|
|
Complex U.S. Gulf Coast refiners use heavy crude as part of a mix to create high-margin distillate products.
|
|
Rather than investing in new secondary units, most refiners are expected to choose cutting capacity to meet the mandate.
|
|
The remaining 50% of Albemarle's 2017 earnings is expected to come from chemical catalysts for oil refiners and bromine.
|
|
The rule will require refiners to mix 19.29 billion gallons of renewable fuels into the gasoline supply in 2018.
|
|
Under the policy, Valero and other oil refiners must mix ethanol with gasoline or buy paper credits to comply.
|
|
With better availability, copper refiners such as Aurubis can lift the amount of refined metal they produce from scrap.
|
|
Refiners have been running at high rates due to surprisingly strong distillate demand and heavy demand for U.S. exports.
|
|
The benefit to complex refiners from the regulatory change "is going to be less than people thought," he said.
|
|
Still, they said, refiners with a large appetite for Canadian crude may have trouble getting alternative supplies fast enough.
|
|
But some refiners without accessible crude supply and with tighter margins may have to cut refinery runs, analysts said.
|
|
That would mean it would be in China, but wouldn't have cleared customs, and therefore unavailable to domestic refiners.
|
|
The RFS requires refiners to blend biofuels like ethanol into their fuel or buy credits from those who do.
|
|
The state attorney general is trying to find out why, and subpoenaed oil refiners as part of the investigation.
|
|
Like other refiners, PES could have eliminated its RINs-related costs by making investments in blending more renewable fuels.
|
|
RFS requires that refiners blend biofuels like ethanol into their fuel pool or buy credits from competitors who do.
|
|
The top 723 U.S. independent refiners look set to take a record hit on renewable fuel credits this year.
|
|
U.S. Gulf Coast refiners, who run sophisticated plants capable of processing heavy crude, are major buyers of Venezuelan oil.
|
|
U.S. crude imports often ramp up from January to May, as refiners gear up to satisfy seasonal gasoline demand.
|
|
Those refiners claim that companies that blend fuels are receiving windfall profits from selling renewable fuel credits, called RINs.
|
|
While the EPA did not announce the changes publicly, the agency clearly sent the message to refiners, ABFA said.
|
|
These merchant refiners have said they are being squeezed by annual government mandates that require increasing volumes of biofuels.
|
|
Refiners often blame these traders for wild price swings that can raise the cost of compliance for small refineries.
|
|
We work diligently to help our smelters and refiners identify labor, human rights and environmental risks in their operations.
|
|
Corn ethanol's share of the fuel market is growing and testing some refiners' ability to comply with the mandate.
|
|
Refiners such as Valero Energy Corp and Phillips 83 typically look for big price rallies to sell future output.
|
|
On the other hand, refiners like Valero may benefit from increased supplies of cheap oil, according to Goldman Sachs.
|
|
All major state and private refiners have asked for May-loading crude cargoes, said a Geneva-based oil trader.
|
|
If Washington had imposed the duties, Mexican sugar refiners said, they would have filed an antidumping claim against fructose.
|
|
Low demand has eroded distillate margins across the globe, prompting speculation that some refiners could start reducing processing rates.
|
|
The spread between oil and gasoline prices has also blown out, which gives refiners incentive to consume more oil.
|
|
He said Indian refiners had started importing oil from the United States but purchases were constrained by U.S. infrastructure.
|
|
Lower volatility on the Urals market made trading houses' margins shrink and gave refiners more possibilities to negotiate prices.
|
|
But the full force of the measure would have fallen on oil refiners, who spent heavily to defeat it.
|
|
Refiners will want to cut their HSFO output as much as possible to offset the expected drop in value.
|
|
This energy deficit, in turn, forces refiners to purchase more expensive, high-octane fuel to blend into retail gasoline.
|
|
New Delhi had earlier this week informally asked palm oil refiners and traders to avoid buying Malaysian palm oil.
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The rule will require refiners to mix 6900 billion gallons of renewable fuels into the gasoline supply in 2628.
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Fuel refiners would surely charge a premium for these specialty blends, increasing the cost of fuel for every American.
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Biofuel producers have long pushed the EPA to set higher blending requirements, something opposed by oil producers and refiners.
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Changes in RIN prices reflect the market's outlook on how many of the credits refiners will need to buy.
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The EPA allows refiners to run a deficit for a while, but they must eventually meet their full obligation.
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Refiners continue to pump out refined fuel, taking advantage of a wide price differential between U.S. crude and Brent.
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A widening discount of WTI to Brent crude makes it more attractive for foreign refiners to process U.S. oil.
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Refiners ideally want at least two to three days to cease operations, according to energy research firm Wood Mackenzie.
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Refiners are able to buy credits from other companies instead of meeting their obligations under the Renewable Fuel Standard.
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The price cut was smaller than the 61.603-50 cents a barrel forecast by refiners in a Reuters survey.
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Refiners of oil products who also have petrochemical plants have a natural hedge in times of low naphtha prices.
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But analysts predict that ebbing U.S. gasoline demand will eventually force Midwestern refiners to find other markets, including exports.
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State refiners applied for the general trade quotas after the government agreed in late 2016 to grant tax incentives on fuel exports making the terms more attractive since it offers refiners greater flexibility in the volumes and time frames for exporting fuel, said the three sources who are familiar with the rules.
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"We do see a lot more refiners, a lot more smaller, second-tier refiners coming up with 0.5% fuel as well, so we don't think there will be much of an issue with the supply side," Rutstin Edwards, head of fuel oil procurement at Euronav, one of the world's largest shipowners said.
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While the major, state-owned refiners in China operate new generation units, it's likely that the smaller, independent refiners may struggle to compete on level terms with their larger domestic counterparts, and also efficient large-scale export refineries in other parts of Asia, such as those in Singapore or India's west coast.
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"My gut feeling is that the joint cut by OPEC and non-OPEC in early December stirred up strong interest from refiners and traders to bet on higher prices, particularly from those independent refiners which have not exhausted the usage of quota at the time," said Harry Liu, oil analyst with consultancy IHS.
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Russian producers sell oil to European refiners along the Druzhba pipeline in Germany, Poland, Slovakia, Hungary and the Czech Republic.
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Nearly all of the state's approximately 19953 ethanol refiners use locally grown corn to produce about four billion gallons annually.
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Agricultural interests have lobbied for the sales after the Trump administration gave breaks on ethanol requirements to some oil refiners.
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Traders say it could fall another $240 to $2.53 in coming weeks as U.S. refiners move into heavy fall maintenance.
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The surge in exports came as China's refiners boosted output of gasoline by 8.9 percent to about 3 million bpd.
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But some industries including retailers, automakers and oil refiners claim it would raise consumer prices by making exports more expensive.
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"European refiners started experimenting with U.S. crude last year," said Ehsan Ul-Haq, director of London-based consultancy Resource Economics.
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Pies noted that in prior times of broad weakness in the energy sector refiners were sometimes a pocket of strength.
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Strong gasoline margins are incentivising refiners to produce as much as possible, making excess distillate as an unwanted co-product.
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India's oil ministry in June told refiners to prepare for a "drastic reduction or zero" imports from Iran from November.
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Roosevelt's successor, Harry Truman, seized 28 enterprises, including meat packing, railways and oil refiners, often in response to labour disputes.
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Refiners must prove their compliance by acquiring government-awarded blending credits - either by earning them or purchasing them from rivals.
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The prospective reductions have left refiners scrambling to find replacement crude which is tightening the physical market for all grades.
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U.S. refiners strained to maximize output of gasoline during 2015 and 2016 to meet rapidly-growing demand from private motorists.
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Lundberg says that trend will likely continue as refiners make higher-cost summer blend gasoline in compliance with federal regulations.
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Midwest refiners could gain a huge market opportunity to pipe fuels into the East Coast, the largest U.S. gasoline market.
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State-run refiners have historically reported margins of $6 to $10 per barrel versus almost $15 for firms like Reliance.
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While his specific plans are unclear, his comments have worried refiners that depend on crude imports between the two neighbors.
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Canadian shippers fear U.S. refiners such as BP Plc and ExxonMobil Corp will snap up the bulk of Mainline capacity.
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Some refiners like Total's Leuna and Poland's PKN Plock are blending tainted oil with cleaner barrels and are refining it.
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In theory, refiners could have processed even more crude this year through investment in new distillation units and de-bottlenecking.
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Supply outages from Nigeria, Canada, Libya and Venezuela, have forced U.S. refiners to draw more from domestic crude stockpiles lately.
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U.S. refiners are also concerned about retaliatory actions by Mexico, which buys about one-quarter of U.S. refined product exports.
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The loss of cheaper domestic crude contributed to the worst quarter by U.S. independent refiners since 2012 earlier this year.
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In the latest weekly government data, consumers used 9.8 million barrels of refined gasoline while refiners manufactured 10.1 million barrels.
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Kilduff, who has been bearish on crude, pointed out that refiners are soon going to go into their seasonal maintenance.
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It would also have a major impact on oil refiners across Asia, including China's state-owned majors Sinopec and CNPC.
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MUMBAI (Reuters) - Indian gold refiners just months ago were ramping up capacity and struggling to secure enough ore from miners.
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John Kilduff, founding partner at energy hedge fund Again Capital, agrees that refiners appear to have little need for imports.
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The two oil traders have a combined experience of more than 20 years with the Indian refiners, the sources added.
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Indian refiners will make payments in rupees for purchases of Iranian oil made since September, one of the sources said.
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If that happens, refiners will lower their output and cut orders for new crude feedstock, putting downward pressure on prices.
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The program allows small refiners in financial turmoil to seek waivers from regulations requiring them to blend ethanol into gasoline.
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Further, he says, refiners in these countries (and in the U.S.) have invested heavily in refineries that use heavy crude.
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Refiners are opting to delay compliance and defer the billions in capital costs over several years, according to regulatory filings.
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The market is now sending a strong signal to refiners to cut gasoline output and switch production plans towards distillate.
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Analysts say higher oil prices and a desire to protect U.S. Gulf Coast refiners have also weighed on Washington's decision.
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Industry analyst Trilby Lundberg said Sunday that higher crude oil costs caused refiners and retailers to bump up their prices.
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The United States stopped short of imposing a ban on imports of Venezuelan oil, which U.S. oil refiners had opposed.
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Oil refiners tend to be more worried about dollar changes because their throughput margins are based on dollars per barrel.
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Druzhba was built in Soviet times and serves refiners in Germany, Poland, the Czech Republic, Slovakia, Hungary, Ukraine and Belarus.
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Polish oil refiners PKN Orlen and Lotos as well as the pipelines operator PERN were not immediately available to comment.
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It is unclear whether a narrowed-down version of the market reform plan will limit the intended benefits to refiners.
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However, some Chinese refiners said they were concerned that a rally in global oil prices would erode their profit margins.
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This boosted prices of the biofuels credits as refiners and other fuel companies run through excess inventories of the RINS.
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Oil refiners and importers can meet EPA's requirements by blending greater amounts of ethanol and biodiesel with gasoline and diesel.
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Within the oil industry, the fight pits Valero Energy Corp and billionaire Carl Icahn against refiners like Marathon Petroleum Corp.
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"These price cuts from U.S. refiners going into wholesale gasoline markets are on their way to retail pumps," she said.
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Venezuelan Oil Minister Manuel Quevedo this week travelled to India in an attempt to convince refiners to boost their purchases.
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U.S. refiners last week asked the administration not to issue sanctions, according to a letter seen by Reuters on Tuesday.
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Exemptions were meant to benefit smaller refiners who may not be able to do the blending or purchase the credits.
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"The timing is good as China has opened up the market for independent refiners to import crude," the source said.
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They have been pushing for that burden to be shifted downstream from refiners to those closer to the gas pump.
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Combined, based on year-to-date expenditures, independent refiners are expected to pay at least $1.8 billion purchasing RIN credits.
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Venezuelan Oil Minister Manuel Quevedo this week traveled to India in an attempt to convince refiners to boost their purchases.
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The exemption will allow Indian refiners to settle about $1.5 billion of outstanding payments to NIOC through direct rupee payments.
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In January, sales of gasoline by refiners was down 6 percent from the year earlier, the latest EIA data available.
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Crude arrivals in May 2017 fell more than 4 percent from April last year due to Chinese refiners' maintenance plans.
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The refiners could buy crudes with that level or lower, or take higher-sulfur grades to blend with sweet grades.
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Although crude and product futures slipped on Monday, most share prices for energy companies, especially refiners, were up, Yawger said.
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The Environmental Protection Agency said last week that it did not believe shifting the blending requirement off refiners was appropriate.
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Some barrels get sold on the open market, others are supplied to typical PDVSA's customers including U.S Gulf Coast refiners.
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But smaller merchant refiners like CVR Energy do not have blending operations and instead sell gasoline in bulk to traders.
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Icahn has said he opposes the regulation because it stresses refiners' finances and prevents them from investing in their facilities.
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A rise in costs of the credits could hit refiners like Valero Energy Corp and PBF Energy Inc, Goldman said.
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Unfortunately for refiners, product inventories are seasonably so high that it is difficult to say that they are a buy.
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Under the program, refiners must either blend renewable fuels into the fuel pool or buy credits from those who do.
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The company then sells the gold on to international refiners, who trade the gold further until it reaches the jewelers.
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The RFS was intended to help U.S. farmers by requiring refiners to add more biofuels into gasoline and diesel supplies.
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"I'd say it remains lackluster but refiners are cranking out high volumes of supply," said John Kilduff of Again Capital.
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Then, the European Union's support for the United States' measures made it difficult for refiners to transport and purchase crude.
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Last year, U.S. refiners imported 180.7 million barrels of crude oil from Africa, according to U.S. Energy Information Administration figures.
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As planned, the project would bring oil sands petroleum from Alberta, Canada, to refiners on the Gulf Coast in Texas.
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Light and sweet crudes are generally more valuable to refiners because they are much easier and less expensive to process.
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While member countries have largely restrained their supply, they have remained intensely focused on keeping market share with Asian refiners.
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It is also a significant player among European oil refiners, with processing capacity of 483,000 barrels a day in Spain.
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Oil ports, producers and refiners in Louisiana, Mississippi and Alabama were planning reopenings as the storm moved inland on Sunday.
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Many Indian refiners have the capability to process such heavier grades and it is also sold at a steep discount.
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That's triple the number found at U.S. facilities with similar sized operations, according to figures from Pemex and U.S. refiners.
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Oil refiners have renewed calls for reform of the program in recent months as prices of the credits have soared.
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Credits already have cost refiners billions of dollars and 2016 looks set to be the most expensive year on record.
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Indian refiners began testing U.S. crudes last year, and volumes have climbed as they became confident the blends would work.
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Those require refiners who cannot blend biofuels, as mandated by the government, to buy paper credits from those that can.
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She said New Delhi could even ask refiners to cut imports below the waiver level to curry favor with Washington.
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Other refiners face similar fallout from running plants hard in late 2015 and early 2016, when gasoline margins were better.
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Those margins have improved as refiners expect strong demand during the summer driving season amid low gas prices, Stevens said.
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The price gains have been supported by anticipated demand from U.S. refiners resuming operations after shutdowns due to Hurricane Harvey.
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Total annual quotas for the refiners approved by the government are 86 million tonnes, or 1.7 million bpd, said Zhang.
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HOUSTON (Reuters) - U.S. refiners are looking at "some run cuts" for the fourth quarter of 2016, said Phillips 66 (PSX.
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China's refiners import mostly medium and heavy sour crudes, which trade at a substantial discount to lighter and sweeter oils.
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The new contract is denominated in yuan rather than U.S. dollars, allowing refiners to manage their price risks more effectively.
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Refiners typically adjust the yield of middle distillates, which include jet fuel, kerosene, gasoil and diesel, according to the margins.
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Refiners are currently making enough money from producing gasoline to cover the costs incurred in producing not-very profitable distillate.
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However, when MTBE was exposed as a public health risk, its use sharply declined, leaving refiners searching for an alternative.
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The change would put the onus on fuel blenders, rather than refiners, to comply with regulations on buying biofuel credits.
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Sinopec plans to shift from refining to more value-added chemicals due to rising competition from private refiners, Ma said.
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Treatment charges are fees that miners pay refiners to process their concentrate into metal, used by producers to galvanise steel.
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Both proposed taxes face opposition from U.S. oil refiners and automakers, among other sectors, warning they would raise consumer prices.
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Icahn had lobbied for the EPA to shift the obligation to buy credits away from refiners and onto fuel blenders.
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The transparency that this is going to bring will be a great benefit to refiners, traders, and consumers across Asia.
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Meanwhile, crude imports were up by 558,000 barrels and refiners produced less distillate fuel, which includes diesel and heating oil.
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Drillers, refiners and other energy companies rose sharply as the price for U.S. crude hit a high for the year.
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And the DBCFT didn't survive the slightest contact with political reality — provoking immediate opposition from retail chains and oil refiners.
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According to the newspaper Puls Biznesu, the two refiners will need to sell around 200 stations to get antimonopoly approval.
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Chinese refiners are boosting petrochemical production as fuel demand in the world's largest crude importer is slowing down, he said.
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Philadelphia-area refiners dispute those figures and have asked Buckeye to turn over documents to regulators that detail the declines.
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Those purchases have largely been driven by a group of private refiners who were granted crude import quotas last year.
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And by stimulating demand for domestically produced ethanol, made largely from corn, the mandate would prop up farmers and refiners.
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Refiners say such a proposal would make the RFS fairer by spreading the obligation to others in the fuels industry.
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Some big refiners have reportedly canceled orders or demanded discounts because the oil PDVSA sent them didn't meet their standards.
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US refiners rely on Venezuela's crude Analysts said tough US penalties on Venezuela's oil industry would be bullish for prices.
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The refiners are not technically included in the new regulations, but they will need to adjust to a new market.
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He said sophisticated American refiners, including Marathon Petroleum, Valero, Phillips 66 and Exxon Mobil, would profit from the market change.
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PDVSA is also seeking to sidestep the sanctions by asking major buyers, including U.S. refiners, to renegotiate contracts, sources said.
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The ETF's overall weighting is three-quarters oil and gas exploration stocks, but it has roughly 19% in oil refiners.
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PBF Energy and Valero Energy, which dropped 9% and 3.6%, respectively, are among refiners which import Saudi crude, Singer said.
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Under the RFS, refiners must earn or purchase blending credits called RINs to prove they are complying with the regulation.
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|
The agency may only allow obligated parties like refiners to buy credits, and may require greater public disclosure as well.
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U.S. refiners have been increasing capacity mostly through debottlenecking and other efficiency gains, even as some smaller plants were idled.
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Potential bidders for the Calumet plant could include refiners operating in the region such or smaller independents looking for growth.
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That's because US refiners, petrochemical makers and electric utilities have run out of capacity to process more American energy supplies.
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White on her past criticism of the renewable fuel standard, which requires refiners to blend corn-based ethanol with gasoline.
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That mandate outlines how many gallons of ethanol and biodiesel refiners must blend into the nation's fuel supply each year.
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|
Any trade embargo could raise gasoline prices, cost jobs in the oil patch and dampen profits for several major refiners.
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The RFS requires refiners to blend 15 billion gallons (57 billion liters) of ethanol into the nation's fuel each year.
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Analysts warned that US refiners will now have to import heavy crude from the Middle East at a significant markup.
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The refiners do not have government licenses to export fuels, meaning they also miss out on potentially lucrative overseas sales.
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Still, protracted high prices will prove costly for refiners, which spent more than $1 billion last year on the compliance.
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"It's pretty telling in terms of how much these Gulf Coast refiners want to pay for these barrels," Murphy said.
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Malaysian Palm Oil Association Chief Executive Nageeb Wahab said the curbs on refined palm oil exports would benefit Indian refiners.
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|
Cruz opposes the federal ethanol mandate, which requires refiners to mix a certain amount of ethanol into their gasoline supply.
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Refiners risk causing damage to their facilities and releasing large bursts of pollution if they power them down too quickly.
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|
In February, at least five U.S. refiners voluntarily reduced output in the most widespread cuts since the global financial crisis.
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"The margins for Indian refiners will be slightly better ... as India prices its products on import parity basis," she said.
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However, refiners around the world are heading into seasonal maintenance season, when they switch from winter to spring fuel blends.
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The pipeline would link oil producers in Canada and North Dakota with refiners and export terminals on the Gulf Coast.
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Refiners may have to consider more dramatic measures such as refinery run cuts if gasoline inventory does not clear out.
|
|
Refinery utilization rates fell 2.7 percentage points to 89.8 percent, lowest since November, as refiners went into seasonal maintenance periods.
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KNOC has closed 18 above-ground tanks in Ulsan, although South Korean refiners still have their own surface tanks there.
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What's more, many Indian refiners are configured to process Iranian oil — this means they can't switch to other suppliers easily.
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Ross expects refineries to run at lower rates through March and April as refiners try to unload winter-grade gasoline.
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U.S. gasoline prices have risen since Wednesday, their highest since April as refiners shut down in preparation for the storm.
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The surge in waivers has caused the cost of compliance credits to plummet, saving refiners hundreds of millions of dollars.
|
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The jump in prices has given a lift to refiners during what is typically a lull in activity for them.
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|
Refiners argue the Renewable Fuel Standard (RFS) has always been unwieldy and the latest rules are a pro-agribusiness boondoggle.
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Changes considered included potentially capping the price of blending credits that refiners must acquire to show compliance with the law.
|
|
Yet analysts warned that weakening U.S. gasoline demand will make it challenging for Midwest refiners to sell their growing output.
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|
Philadelphia area refiners are currently fighting efforts to reverse a pipeline so Midwest companies can move fuel to western Pennsylvania.
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|
The new supply-demand balance changed market rules: trading firms used to be the market makers as they could easily understand refiners' need and sell cargo with a significant premium, but now most refiners in Europe have a wide choice of different grades, which they use as a strong point in negotiations with sellers.
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In Norway, oil workers threatened to strike, while in Venezuela oil producers and refiners struggled with power outages and equipment shortages.
|
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A potential 5% tariff on refiners like Marathon Petroleum and Valero could easily eliminate most of the companies' margins, Calvasina said.
|
|
Meanwhile, U.S. oil prices rallied, after crude stockpiles unexpectedly drew down with refiners coming back online following Hurricane Harvey last month.
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|
It buys oil products from refiners and delivers it to corporate customers such as FedEx and GM all over the country.
|
|
At least two private refiners, Hengli Group and Zhejiang Petrochemical, are preparing to launch commercial production of two new large plants.
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|
US refiners, forced to pay up for heavy crude, will pass along at least some of the costs to gas stations.
|
|
The startup of the expanded Sunrise pipeline also comes at a time when Midwest refiners are wrapping up seasonal maintenance work.
|
|
Gold imports in May could drop to around 50 tonnes, Jose of the refiners' association said, from 85 tonnes in April.
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|
"Ethane crackers make a lot of hydrogen which refiners can use in hydrocrackers and hydrotreaters" to make motor fuels, Lewandowski said.
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Cheaper domestic crude helps cover extra transportation costs of rail, but a narrow spread entices coastal refiners to take imports instead.
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Only state refiners, accounting for about 60 percent of India's 5 million bpd refining capacity, purchased oil from Iran since November.
|
|
Enjoying good profit margins in 2017, Asian refiners had cranked up processing to a record 23 million bpd by last October.
|
|
Growing fuel inventories and weak demand are now hammering refiners both large and small, turning a typical advantage on its head.
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That would help refiners, who were hurt by weak margins last year due to oversupply, as the summer driving season approaches.
|
|
Analysts and traders said long-term fundamentals remained strong and more stockpile draw-downs are likely as refiners exit maintenance season.
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|
The company has increased Venezuelan oil sales to India's refiners Nayara Energy, which it partly co-owns, and Reliance this year.
|
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Venezuela ships about 500,000 barrels of crude oil to the United States daily, which refiners use to produce gasoline and diesel.
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This would force refiners to start using up reserves, pushing up prices at least until production catches back up with consumption.
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She believes Chinese refiners will cut purchases by a couple thousand barrels per day, but will keep importing some Iranian crude.
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The agency collects its own comprehensive data on production, imports and stockpiles from refiners, importers, pipeline companies and motor fuel blenders.
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Those cuts are the steepest in over a decade and come as independent refiners also reduce runs by 30% to 50%.
|
|
Most of the state refiners did not respond to queries on the matter, while Essar Oil, MRPL and HMEL declined comment.
|
|
The market is tilting in favor of Midwest refiners mostly because they can access cheaper crude than their East Coast counterparts.
|
|
The renewable fuel standard will now require wholesalers — instead of refiners — to produce gasoline with a minimum volume of renewable sources.
|
|
What's next: Cornyn, who represents a state with major oil refiners, said corn interests have reason to come to the table.
|
|
The standard requires refiners either to blend biofuels into their fuel or purchase the credits, called RINs, from those that do.
|
|
Instead, refiners seem to be relying on changes to downstream processing units to adjust the balance between gasoline and distillate production.
|
|
Rather than cut crude throughput, refiners are opting to produce more diesel in a bid to limit the oversupply of gasoline.
|
|
Vitol and Unipec are mainly targeting Chinese independent refiners, or teapots, which have shown interest in taking the oil, traders said.
|
|
Iraq reduced its contracted volumes for European refiners in 2019 and increasingly sells its oil to the highest bidder via tender.
|
|
But Shandong's imports may fall in the coming months as some refiners found the crude too light, several trade sources said.
|
|
Instead, many analysts believe the U.S. market is simply well-supplied with crude and refiners aren't keen on importing any more.
|
|
Meanwhile, refiners globally are also processing more medium and heavy crude to reap higher profits from fuel oil and middle distillates.
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|
The government wants consolidation among Japan's eight refiners as a shrinking population and an increase in fuel-efficient vehicles crimps demand.
|
|
Indian refiners imported around 10 million barrels of Iranian crude in October, although its November shipments are likely to be lower.
|
|
Despite record consumption of gasoline, refiners have struggled to work down the excess stockpiles that built up in January and February.
|
|
The deal comes as Indian refiners ramp up purchases of U.S. oil to compensate for the loss of Iranian oil supplies.
|
|
So refiners use clever chemistry ("fluid catalytic cracking") and brute-force heat ("coking") to break some long molecules into shorter ones.
|
|
Oil refiners Motiva Enterprises and Marathon Petroleum Corp said they were monitoring the developing storm and prepared to implement hurricane plans.
|
|
PBF, one of the largest independent U.S. oil refiners, agreed to buy the 149,000 barrel-per-day Torrance plant last September.
|
|
Output of cars barely grew, while steel mills, aluminum smelters and oil refiners all throttled back output from recent high levels.
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|
Refiners typically reduce their need for crude oil between late August and October, as they switch over to produce winter blends.
|
|
Additionally, Kloza anticipates that U.S. refiners will start to ratchet back production in late-September and October as crude demand wanes.
|
|
The other four refiners are Shandong Tianhong Chemical, Shandong Shouguang Luqing Petrochemical, Wudi Xinyue Fuel and Chemical, and Shandong Shengxing Chemical.
|
|
The biggest jump in exports has come from China, where refiners are selling off record amounts of excess fuel into Asia.
|
|
In Japan, oil imports have been falling steadily for years, yet its refiners produce more fuel than its industry can absorb.
|
|
Recent talks have centered on higher prices and ensuring that raw sugar reaches those types of cane refiners, the sources said.
|
|
The sanctions limit U.S. refiners to paying for Venezuelan oil by using escrow accounts that cannot be accessed by Maduro's government.
|
|
Private refiners such as Hengli Petrochemical Co , which commissioned its 400,28.75 barrels per day (bpd) plant this year, didn't receive quotas.
|
|
Other Chinese refiners are looking to reconfigure their plants so they could buy and process U.S. oil, one trade source said.
|
|
The Polish refiners used sea-borne supplies and oil inventories to keep their plants working when deliveries from Russia were suspended.
|
|
Separately, refiners Axeon Specialty Products and PBF Energy made spot purchases of Venezuela's diluted crude oil (DCO), Boscan and Hamaca crudes.
|
|
Crude stocks are positioned as close to refiners and final consumers as possible, subject to the availability and cost of storage.
|
|
"We are seeing a drop ... for May crude cargoes from private refiners," said Zhou Guoxia, a senior energy analyst at JLC.
|
|
Refiners tend to buy only when lower U.S. demand from events such as refinery maintenance drives down U.S. oil prices CLc1.
|
|
Stockpiles meanwhile have started to decline, as refiners process a record amount of crude and crank up production after seasonal maintenance.
|
|
The Trump administration has tried to reduce compliance costs for refiners, drawing the ire of biofuel producers and their legislative backers.
|
|
But such rapid rates of processing are unlikely to be sustainable and refiners have already begun to scale back crude throughput.
|
|
The law requires refiners to blend biofuels such as ethanol into gasoline or purchase credits from those who do such blending.
|
|
For Chinese refiners, the trick is to work out whether it's still worth importing crude for processing into fuels for exports.
|
|
It also helps solve one of the biggest problems facing Bakken oil producers — getting their oil to out-of-state refiners.
|
|
Urals is currently priced in the physical market at a discount to Brent by pricing agencies, which poll traders and refiners.
|
|
They can also sell any RINs they have on hand into the market, which helps other refiners by cutting market prices.
|
|
As a result, refiners produced roughly 300,000 fewer barrels-per-day of diesel in April compared to last year, Broadbent said.
|
|
U.S. refiners processed 17.3 million barrels of crude last week, the second highest ever after a slightly elevated run in April.
|
|
According to the EIA, U.S. refiners have added almost 500,000 bpd of atmospheric crude distillation capacity since the start of 2016.
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