US refineries experienced the lowest revenue in the last three months of 2020. This indicates the pressure of rising crude oil prices, weak demand due to travel restrictions imposed to curb the corona virus, and higher costs of refinery operations associated with the integration of renewable fuels into their products.
Independent US refineries lost $ 1.51 a share in the last three months of 2020, according to the Icon Refining Institute. In the third quarter of 2020, the figure was one dollar and six cents per share.
Independent US refineries, including Marathon Petroleum, Valero Energy and Philips 66, saw unbalanced demand in the fourth quarter of 2020 due to the resurgence of the Corona virus worldwide.
Global liquid fuel consumption fell by 9 million barrels per day in 2020, according to the US Energy Information Administration.
Crude oil prices rose more than 20 percent in the final quarter of 2020, lowering US refineries’ profit margins to less than $ 10 a barrel on average.
Restrictions on curbing the Corona virus also reduced U.S. road travel by 11 percent in November from a year earlier. US road traffic fell 9 percent in October.
Quarantines in various European countries also reduced international flights and aircraft fuel demand in the fall.
US refinery profit margins improved by the end of 2020 to about $ 12 a barrel, while refineries are now operating at 80 percent of their capacity, about 2 million barrels less than the same period last year.