Shell’s refining margin has jumped 75% as tighter fuel supplies increase pressure across the market, according to OilPrice.com.
The report indicates that limited fuel availability has boosted refining profitability. In practical terms, the spread between crude input costs and prices for refined fuels has widened for processors.
For major players such as Shell, that move is an important signal because it reflects conditions not only in crude markets but also in end-fuel markets. Higher margins usually point to supply failing to keep up with demand.
The OilPrice.com headline suggests the market reaction is being driven primarily by shrinking fuel supplies. Investors are now watching how long elevated profitability in refining can last.
