U.S. refiners cutting Q3 output across the board on weaker margins, plant overhauls

Crude oil futures rose for a fourth straight session on Friday and posted their first weekly gain in five weeks, supported by tightening inventories, especially in the United States, and a fundamental risk premium around tensions in the Middle East.

Analysts said A drop in initial weekly U.S. jobless claims reported early Thursday helped set a reassuring tone for investors who had been worried about the state of the labor market.

Oil also received support from China’s consumer price index, which rose last month at a slightly faster rate than expected.

“The positive momentum was reinforced by better-than-expected Chinese inflation figures. In this context, it would not be surprising to see the price of a barrel rise by 1.5% this year. $80 level test“According to analyst Pierre Verret of ActivTrades, Reuters reported.

“The price of the barrel benefited from the increasing geopolitical tensions in the Middle East, which fueled fears of a potential conflict that could disrupt the region’s production and reduce global supplies of crude,” Verret added.

Nymex crude (CL1:COM) for September delivery ended the week +4.5% To $76.84 a barrel, including Friday’s 0.8% gain, and Brent crude for October (CO1:COM) closed at $76.84 a barrel, including Friday’s 0.8% gain. +3.7% To $79.66 a barrel this week, including a 0.6% gain on Friday.

NYMEX Natural Gas Front Month (NG1:COM) for September Delivery +8.9% U.S. crude oil rose to $2.143/mmBtu this week, posting its first weekly gain in four, including a 0.7% gain on Friday.

Exchange-traded funds:NYSEARCA: Use), (BNO), (UCO), (SCO), (USL), (DBO), (DRIP), (GUSH), (USOI), (UNG), (BOIL), (KOLD), (UNL), (FCG)

U.S. refinery executives said this week that they Production cut this quarterWith profit margins remaining thin and companies planning more downtime for maintenance as fuel demand declines in the summer.

Refineries were running at an industry average of 95% of capacity earlier this year, creating a glut of gasoline stocks that benefited motorists but hurt profits, so “the hope is that if you cut supply you might get higher margins,” Matthew Blair, an analyst at Tudor, Pickering Holt, told Reuters this week.

Marathon Petroleum Corp. (MPC) said this week it expects its 13 refineries to run at 90% of their total crude throughput of 3 million barrels per day (bpd) in the third quarter, down from 97% in the second quarter, Valro Energy Inc. (VLO) will cut its processing rate to about 2.86 million bpd versus 3 million bpd last quarter, and Phillips 66 Inc. (PSX) plans to run its plants at a low 90% of capacity after running at a five-year high of 98% of capacity in the second quarter.

energy (New York: Canada: XLE), as represented by the Energy Select Sector SPDR Fund ETF, was the second-best performer in the stock market during the week, +1.1%.

Top 10 companies that gained in the energy and natural resources sector in the past five days: Indonesia Energy Corporation (INDO) +41.5%Wave Environmental Energy (WAVE) +24.1%Pampa Energia (PAM) +19.3%Gas Carrier (TGS) +18.8%Comstock Resources (CRK) +17.9%Euroseas (ESEA) +16%Calumet Specialty Products (CLMT) +15.2%NRG Energy Corporation +14.7%Vista Energy (VIST) +14.2%Seanergy Maritime (SHIP) +13.8%.

Top 5 Declining Energy & Natural Resources Companies Over the Past 5 Days: NextDecade (NEXT) -40.1%Profrak Holding (ACDC) -25.4%Montauk Renewable Energy (MNTK) -24.6%New Fortress Energy (NFE) -24.1%Green Plains (GPRE) -22.4%.

Source: Barchart.com