Refiners benefit from tight capacity and cheap crude.
Refining stocks like Valero and Marathon Petroleum are hitting record highs because gasoline and diesel futures have jumped while crude oil prices fell after 13 million barrels of stranded crude exited the Strait of Hormuz. Limited global spare refining capacity keeps fuel prices elevated, directly benefiting refiners.
Refiners benefit from tight capacity and cheap crude.
Refining stocks like Valero and Marathon Petroleum are hitting record highs because gasoline and diesel futures have jumped while crude oil prices fell after 13 million barrels of stranded crude exited the Strait of Hormuz. Limited global spare refining capacity keeps fuel prices elevated, directly benefiting refiners.
JPMorgan analysis indicates a large supply shortfall from Strait of Hormuz disruption, requiring demand destruction from the US and Europe, leading to higher oil prices.