SEATTLE (Oil Monster): The U.S. Energy Information Administration (EIA), in its latest report, noted that crude oil prices remained relatively stable during the third quarter of the current year. Also, refinery margins surged to hit the highest level so far this year.
The price of Brent crude oil ended Q3 at just 9 cents a barrel (b) lower than it started the quarter, according to the report, after trading in a narrow range throughout the quarter. In July, August, and September, the average prices were $70/b, $67/b, and $68/b, respectively.
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Crude oil prices were under pressure to decline after OPEC+ members announced plans to boost supply. Growing worries about an oversupplied market were also influenced by the uncertainties surrounding international trade flows. The rising geopolitical risks counterbalanced the downward price pressure brought on by increased supply.
In July, the diesel crack spreads at New York Harbor hit their highest level since February 2024, at 85 cents per gallon. The primary cause of this was increased pressure brought on by the danger posed by Middle Eastern refiners' supplies. In August, diesel crack spreads dropped to as low as 60 cents per gallon, easing the pressure. According to the EIA, the cracks slightly increased in September.
The gasoline refinery margins started the quarter lower than the five-year average. But for the first time since last April, the margins surpassed their five-year average in mid-August.
