Refiners Thrive Amid High Oil Prices

High crude oil prices are affecting the refining industry, but surprisingly, some refiners like Par Pacific Holdings (PARR) and HF Sinclair Corporation (DINO) are thriving. The U.S. Energy Information Administration projects West Texas Intermediate crude to reach $84.65 per barrel this year, up from last year's $65.40.

Despite the high prices, leading refiners have seen significant gains in the past six months, with PARR and DINO experiencing over 50% increases. This is due to constrained global refining capacity, low fuel inventories, and resilient demand for gasoline, diesel, and jet fuel.

As a result, refiners are earning strong margins, making them attractive investment opportunities. PARR's refining index was still high in July at $31.34 per barrel, only slightly below its second-quarter average of around $33.