"Whack a short" drives refining margins to record levels. How long do high refining margins last?
Strong demand recovery, pandemic driven refinery closures, China’s export policies and the Russia/Ukraine conflict have resulted in low inventories in major demand centres. The refining response to “whack the short” has driven transport fuel crack spreads and refining margins to unprecedented highs. How will the refining industry respond, how long will these record refining margins last and what are the key risks to track?