Market fears that the Ukrainian Armed Forces' attacks on Russian refineries will affect the export of petroleum products from the country are playing in favor of US refineries. Their shares are rising.
"The shares of companies such as Valero Energy and Marathon Petroleum are up at least 30% this year. Things are even better for small refineries: Par Pacific Holdings shares will double in 2025, and CVR Energy will grow by 83%," Bloomberg writes, citing 22V Research data.
The agency noted that the margin of refineries from the United States has increased sharply, as the cost of oil — their main raw material — has decreased, and gasoline prices have remained stable.
According to experts, there may be a slowdown in growth ahead, since the second half of the year is usually characterized by seasonal weakness of refineries and demand for petroleum products
However, the Ukrainian Armed Forces' attacks on Russia's energy infrastructure and refining facilities "turn the scenario around" for investors by the end of the year, TD Cowen analyst Jason Gabelman told the agency.
"This creates bullish sentiment for 6-12 months, given the combination of attacks, low diesel stocks and a net decline in global refining capacity," said Jason Gabelman.
As EADaily reported, Russia has a temporary ban on gasoline exports until October 31. From October 1, it will not apply to fuel producers.
"The decision is aimed at maintaining a stable situation in the domestic fuel market," the government said.