Global Fuel Shortage Fuels Record-High Crack Spreads for Top US Refiners

A global fuel shortage has driven record-high crack spreads for top US refiners. Even if oil prices decline, refineries may still profit from product premium pricing.

The issue goes beyond rising crude prices; tight supplies of gasoline and diesel combined with increasing constraints in the California market could boost refining margins. The U.S. retail average price for gasoline remains above $4.40 per gallon, while US diesel futures settled at a record high this week.

Three top-ranked US refiners - Marathon Petroleum (MPC), Valero Energy (VLO), and PBF Energy (PBF) - are poised to benefit from the global fuel crisis. These companies have asset and strategic advantages that align with tightening global demand, including the growing shortfall on the West Coast.