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Oil refiners surge as crack spread tops $60 a barrel

The benchmark U.S. 3-2-1 crack spread recently climbed above $60 per barrel, the highest on record, as crude feedstock costs fell faster than gasoline, diesel, and jet fuel prices stayed high.

Reported · Written up by our desk · Energy

Oil refiners are experiencing one of the strongest profit conditions in years as crude prices ease, while refined products remain expensive, lifting refining margins across major regions. OilPrice reports the benchmark U.S. 3-2-1 crack spread, a measure of refining profitability, recently climbed above $60 per barrel to its highest level on record, with similar gains seen in Europe and Asia.

The outlet attributes the windfall to a faster decline in feedstock costs than in prices for gasoline, diesel, and jet fuel. As a result, every barrel processed is generating unusually large returns, even though crude is back closer to pre-Iran war levels.

OilPrice also links the shift to developments around the Strait of Hormuz. After a ceasefire between the U.S. and Iran in mid-June, crude that had accumulated on tankers and in storage began reentering the market, changing supply conditions almost overnight.

According to Kpler, Middle Eastern crude exports rose to more than 12 million barrels per day in June from less than 8 million bpd in May, and July exports are expected to edge higher. The combination of producers releasing stored crude and restarting fields that were shut during the conflict has created a temporary supply wave the market is still absorbing.

Latest closeWTI crude $78.04 ▲9.3%|Gasoline (RBOB) $2.974 ▼0.4%

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