Independent oil refining companies in the United States, such as Phillips 66 and Marathon Petroleum, have cut budgets because of the global oversupply of petroleum products. As noted by Reuters, the end is near “Golden era” high margin in processing.
In the past six years, refiners in the United States have invested in the expansion of production billions of dollars. This was done against the background of increased volumes supplied to the refineries of American oil, and increasing global demand for diesel fuel and gasoline. Currently, however, most likely, the industry is preparing for hard times, according to the Agency.
In the first quarter total net profit of the ten largest independent oil refineries amounted to 944 million dollars is 74% lower than the same period in 2015. Corporate profits are falling sharply due to the existing oversupply of fuel caused by the increase in production in the U.S. and abroad.
