Fuel Market Tightness Fuels Record Profits for US Refiners
Refineries and integrated oil companies are at the center of one of the most closely watched stories in the US economy due to tight fuel markets and record-high crack spreads. This has led to a shift in profits for some companies, while costs have risen sharply for others.
The current squeeze is affecting various stocks, including International Seaways (INSW), which operates a global tanker fleet that ships crude oil and petroleum products. The company carries a market value of roughly US$5.2 billion and generates about US$724 million from Crude Tankers and US$533 million from Product Carriers.
International Seaways' performance is tied to the eastward shift in refining capacity, with new Middle East and Asian refineries leading to longer shipping routes. This trend is expected to increase product tanker utilization and revenues for International Seaways.
Another company affected by this trend is Calumet (CLMT), which plugs directly into the refined product margin story. The company produces finished fuels and specialty products that move with crack spreads, making it sensitive to shifts in today's tight fuel backdrop.
Calumet has a market value of US$4.7 billion and generates revenue from Specialty Products and Solutions (US$3.1 billion), Montana/Renewables (US$1.2 billion), and Performance Brands (US$341 million). The company is set to start up the MaxSAF 150 project in the first half of 2026, enabling it to produce 120-150 million annual gallons of sustainable aviation fuel (SAF) at relatively low capital costs.
The final company mentioned is Green Plains (GPRE), which leans into the refining theme from the low carbon side. The company produces ethanol and related fuels whose economics tie back to fuel blending margins and refined product pricing. Green Plains' performance is tied to policy and demand shifts, particularly with regards to electric vehicles and environmental impacts.