Core Insights - Several energy companies, including Valero and Phillips 66, have announced refinery closures in California due to regulatory challenges and operational losses [1][5][10] Refinery Closures - Valero Energy Corporation will close its Benicia refinery, which had a capacity of 170,000 barrels per day and employed over 400 people, and also evaluated its Wilmington refinery, which produced 15% of Southern California's asphalt supply [3][4] - Phillips 66 ended operations at its Los Angeles refineries, which spanned 650 acres and employed about 600 [5] - Chevron is relocating its headquarters from San Ramon to Houston, Texas, having operated in California since 1879 and employing over 2,000 people [6] Key Factors - Valero reported $1.1 billion in asset write-offs for its Benicia and Wilmington refineries in Q1 2025, while Chevron disclosed after-tax charges of $3.5 billion to $4 billion in Q4 2023, primarily due to asset impairments in California [8][9] - The regulatory environment in California has been cited as a significant factor for these closures, with policies aimed at reducing fossil fuel reliance over the past two decades [9][10] - California Assembly Bill AB X2-1, effective January 2025, allows the California Energy Commission to enforce minimum inventory levels for refiners, impacting profit margins [11][12] Potential Impact - The closure of Valero's Benicia refinery, which produced 4.5 to 4.7 million gallons of gasoline per day, could lead to fuel shortages and price spikes, especially if supply chains are disrupted [14][16] - California has the second-highest average gas prices in the U.S., with gasoline averaging $4.38 per gallon as of January 2025 [18] - Concerns have been raised about the impact of refinery closures on U.S. military installations in California, which may face jet fuel supply challenges [20][21] Legislative and Regulatory Considerations - Calls for legislative changes to support refiners and address the restrictive policies in California have been made, although success is uncertain [23]

Swiss-based commodities and energy trading house Mercuria Energy Group is moving closer to acquiring a refinery and hundreds of fuel retail stations in Argentina from struggling Brazilian biofuels producer Raízen, according to sources familiar with the talks. Two people with knowledge of the matter said negotiations have advanced significantly, with one noting the transaction could be finalized soon, although risks remain that the deal could still fall through. Another source said a signing may still be w ...

Management at a Russian-owned oil refinery in Germany have privately warned Berlin that U.S. sanctions are hurting its business and threatening fuel supply for the country's capital and the region, ac... ...

Summary of the 2026 Refined Products Outlook Industry Overview - The report focuses on the refined products industry, specifically diesel and gasoline margins in the US, Europe, and Asia, as analyzed by Goldman Sachs Global Investment Research [1][6][30]. Key Insights and Arguments 1. **Margin Performance in 2025**: - US diesel margins rose by $5/bbl (+20%) year-over-year despite a 14% decrease in crude prices, driven by disappointing refining capacity additions and solid demand [2][6]. - The average US diesel margin reached $28/bbl, nearly 75% above the 2013-2019 averages [6]. 2. **2026 Margin Forecast**: - Expected margins for 2026 are projected to remain $5-15 above the 2013-2019 averages, with US diesel margins forecasted at $31/bbl and gasoline margins at $18/bbl [2][8][41]. - European diesel and gasoline margins are expected to be slightly above market forwards at $23/bbl and $13/bbl, respectively, due to a ban on products refined from Russian crude [41][42]. 3. **Global Refining Utilization**: - The global refining utilization rate is anticipated to rise above the 70th percentile of historical averages in 2026, driven by limited capacity additions and strong demand growth [2][31]. - A projected increase in global refining utilization rates and freight rates is expected to support a constructive outlook for global products margins [2][30]. 4. **Regional Dynamics**: - Stricter renewable fuels blending requirements in the US are likely to increase Renewable Identification Number (RIN) costs, further supporting margins [41]. - In Asia, expected delays in new refining capacity additions and fiscal pressures on independent refineries are likely to support margins, projected at $19/bbl for diesel and $8/bbl for gasoline in 2026 [43]. 5. **Moderation in 2027**: - A slight decrease in global products margins is expected in 2027 as refining capacity grows in emerging markets and product stocks recover to seasonal norms [2][44]. 6. **Upside Risks**: - Risks to the margin forecast are skewed to the upside, particularly for diesel, due to potential delays in emerging market capacity additions, disruptions in Russian refinery operations, and high freight rates [50][54]. - A hypothetical escalation in geopolitical tensions, such as in Iran, could further boost diesel margins by reducing stocks and increasing freight rates [60]. Additional Important Insights - **Freight Rates**: The average clean tanker freight rate is expected to increase by $1.6 to $6.3/bbl, influenced by high oil on water levels and geopolitical uncertainties [35][36]. - **Refinery Capacity Additions**: The report highlights ongoing challenges in the execution of refinery projects in India, with significant delays expected in capacity additions [69]. - **Geopolitical Factors**: Geopolitical shocks, including drone attacks on Russian refineries, have contributed to a tightening of the refined products market, impacting margins positively [16][52]. This comprehensive analysis provides a detailed outlook on the refined products market, emphasizing the interplay of demand, geopolitical factors, and refining capacity dynamics.

With a market cap of $61.8 billion, Valero Energy Corporation (VLO) is a global energy manufacturer and marketer producing petroleum-based and low-carbon transportation fuels and petrochemical products. It operates through Refining, Renewable Diesel, and Ethanol segments, supplying fuels and related products under well-known brands such as Valero, Diamond Shamrock, and Diamond Green Diesel. Shares of the San Antonio, Texas-based company have outperformed the broader market over the past 52 weeks. VLO sto ...

BP BP.L is in talks to sell its German oil refinery site in Gelsenkirchen to investment firm Klesch Group, news site Politico reported on Monday, citing two people familiar with the matter. ...

Core Viewpoint - Indian Oil Corp and Hindustan Petroleum Corp have jointly purchased 2 million barrels of Merey crude from Venezuela for delivery in the second half of April [1] Group 1: Company Actions - Indian Oil Corp and Hindustan Petroleum Corp are state refiners in India [1] - The purchase of 2 million barrels indicates a strategic move to secure crude oil supply from Venezuela [1] Group 2: Market Implications - The acquisition of Venezuelan crude may reflect changing dynamics in the global oil market, particularly in sourcing from countries facing sanctions [1]

Key TakeawaysRussia claims capture of Chuhunivka in eastern Ukraine, intensifying geopolitical tensions, while Ukraine implements emergency power cuts following widespread airstrikes.An assassination attempt on top Russian military intelligence General Alexeyev has been reported, with suspects expected to be interrogated soon, according to Kommersant.Ukrainian President Zelenskiy anticipates the next round of trilateral peace talks in about a week, with the U.S. reportedly aiming for a deal to end the war b ...

United Steelworkers is asking workers at BP's 440,000-barrel-per-day refinery in Whiting, Indiana, to prepare for a strike or lockout, the union said on Thursday after weeks of negotiations with the B... ...

Phillips 66 will lay off around half of its employees at its sole remaining oil refinery in California after shuttering operations, Bloomberg News reported on Thursday, citing a filing with California... ...