Oil Refiners in US Slow Down, Stoking Global Crude Glut Worries.

Some of the top US oil refiners, including Marathon Petroleum Corp., PBF Energy Inc., Phillips 66, and Valero Energy Corp., are reducing their operations this quarter, raising concerns about a global crude glut. These four refiners account for about 40% of America's capacity to produce gasoline and diesel. The slowdown in the US fuelmaking complex is due to stagnant consumption and shrinking profit margins. This trend contradicts the International Energy Agency's estimate that global fuelmakers will process more crude this year. The shrinking margins are also attributed to the growing popularity of electric vehicles and LNG-fueled heavy trucks in China, as well as the expected increase in global crude supplies. However, the relief from surplus crude may be short-lived as Guyana increases production and OPEC+ plans to bring back daily output in the fourth quarter. The potential for supplies to exceed demand is reducing the premium added to crude prices due to geopolitical risks. Phillips 66 cited softer margins as the reason for its reduced output projections, and Marathon Petroleum Corp. expressed concerns about the Chinese economy and the return of OPEC barrels. [Extracted from the article]