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| http://www.zerohedge.com/news/2016-07-07/padd-1-holy-mess-what-finally-drags-crude-oil-lower |
"U.S. gasoline crack spread a proxy for refiner margins, has dropped 34 percent in two weeks"
"...East Coast gasoline stocks hit a record 72.4 million barrels, about 17% higher than the same time last year.
...refiners could be forced to cut production significantly to account for weaker seasonal demand.
...China, suddenly finds itself in the midst of a gasoline export boom: since the local refineries have been mimicking those in the US and operating until recently at a feverish pace, and since local demand for gasoline has not materialized, China is now forced to find offshore buyers for all its record excess gasoline.
...The 10 largest independent U.S. refiners booked a combined net income of $944 million in the first quarter, down 74 percent from a year earlier
More pain in the American oil patch coming
...with the inventory bottlenecking having reached all the way to the gasoline level, in lieu of refiner buying, crude producers will be forced to start selling oil and dumping prices just to get marginal demand as both onshore and offshore storage is near capacity."
