Is the Party Over for Oil Refiners?

The last year or so has been a great time to be in the oil-refining business. Thanks to problems getting crude oil from new shale oil plays to big markets like the Gulf Coast, the price for certain crudes in the U.S. have sold at a steep discount to foreign crudes. Today, though, that pricing advantage is starting to fade as the price for West Texas Intermediate, the domestic benchmark, is not within $6 to $10 of foreign spot prices.

This is particularly concerning for refiners in the mid-continent region, who were seeing the price differential between a barrel of crude and a barrel of refined products as high as $35 only a couple of quarters ago. Does this mean the end of the mid-continent advantage? Tune into the video below as Fool.com contributor Tyler Crowe looks at the prospects for these refineries and three companies he sees will be most affected. 

The refining business has long been a cyclical one, but your portfolio can't afford these will ups and downs. The Motley Fool has compiled a special free report outlining how to put your portfolio on a solid foundation for years to come. It's called "Secure Your Future With 9 Rock-Solid Dividend Stocks." You can access your copy today at no cost! Just click here.


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