Global fuel shortages drive up refinery margins, Gulf Coast refineries hit a new high of $72 per barrel

The refining industry is undergoing a historic transformation, yet at the same time, its profitability has reached unprecedented heights. This year, attacks in the Middle East and Russia have led to a severe shortage of global fuel processing capacity, forcing refineries in other regions to operate at full capacity and charge higher prices. In September this year, refinery margins on the U.S. Gulf Coast soared to a historical high of $72 per barrel, more than doubling since the beginning of the year. As prices for gasoline, diesel, and jet fuel have surged, refinery profits in Europe and Asia have seen similar increases. For the refining industry, this is, in a sense, a revival. Previously, with the widespread adoption of electric vehicles, hybrid vehicles, and the rise of remote work, many warned the industry was inevitably headed for decline. Marathon Petroleum, Valero Energy, and Phillips 66 split from their parent companies over a decade ago, and now have become some of the best-performing S&P 500 stocks this year, each seeing their share prices rise over 100% since January.