Commodities
Refiners Thrive as Oil Prices Plunge Amid Ceasefire Chaos
Oil prices plummeted after Iran and the U.S. agreed to temporarily halt military operations in hopes of reaching a deal.
The ceasefire won't rebuild lost capacity, however, and refiners are benefiting from oil volatility and tight fuel supply.
Crack spreads, which measure the difference between what refineries pay for raw materials and sell refined products, have widened as crude prices dropped faster than gasoline or diesel prices.
Delek U.S. Holdings Inc., PBF Energy Inc., and Par Pacific Holdings Inc. are three refiners that have outperformed their larger peers in recent months, thanks to varying financial and geographic exposures.