01 October 2009

Refiners struggle as fuel demand slows

Declining demand is continuing to hurt all commodity sectors. Even oil refiners are now hurting as demand for gasoline remains low. Who knows, maybe once the speculators who have been stock-piling crude during the past year begin unloading their inventories the resulting drop in oil prices could lift refinery profits.
U.S. refiners may fail to meet financial requirements of their credit agreements later this year as slumping fuel demand erodes the profitability of making gasoline and diesel.