Can we get this big divergence between products and crude for longer than a few weeks until the oil industry closes any arb as everybody and their brothers runs their refinery as hard as they can to print money?
Answer: I think so, yes. In general, if there is not enough refining capacity to satisfy product demand while crude remains available, that is what one gets - record refinery cracks.
Why do we not have enough of it? Because of geopolitics. Russia lost some 3mbpd of refining capacity. China reduced runs by the same amount, but not so much voluntarily but due to the SoH crisis in combo with a weak domestic market. The latter means the CCP keeps gasoline and diesel prices capped. If crude spikes, Chinese refineries have no margins.
Is the CCP willing to do more? Comes down to crude price. Unlikely while the SoH flows remain interrupted with price spikes following such interruptions. No the Houthis joint the party. I have a hard time to see China increase runs here.
3rd of June 2027.
Saturn will transit into Aries.
That will be the end of Oil economies.
Oil is a primitive commodity now.
We are already seeing the trend. Venezuela has gone, Russia is going, Iran is going, all big oil corporations will be gone.
US is looking for Oil dominance. So the trend is clear what coming after Trump succeeds in Oil dominance play.
Trump is a born fucker and this is going to be the biggest fuck in his life.
But energy is required for economic machine to keep running.
Some major shift as to, from where the world's energy requirements are going to be fulfilled, is going to happen.
Bookmark this.
And don't flood this this post with your stupid comnent just because it's easy job on social media.