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Near Term Refining Margins to Remain Elevated: Exxon

OIL

Refining margins are expected to remain elevated in the near term due to tight fuel supplies and high consumer demand according to Exxon Mobil.

  • “As long as inventories are low, we’re very susceptible to hiccups.” said Jack Williams
  • The global refining industry lost about 3mbpd of supply during the pandemic due to plant shutdowns and conversions to low-carbon products like biofuels. Demand has since rebounded but supply has been much slower to match it, resulting in refining margins well above the 10-year average, Exxon said.
  • Exxon has no plans to respond to crude approaching 100$/bbl with a large increase in supply, Williams said adding that it is not capital efficient to move supply up and down.

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