What does the future hold for mid-continent refiners? In this video, Motley Fool energy analyst Joel South describes the issues facing refiners today. First, the EPA recently announced possible limits on sulfur content in gasoline, which would increase gasoline production costs. Also ethanol Renewable Identification Numbers are becoming more expensive, further pressuring profit margins. Next, the WTI-Brent crude spread has now declined to about $12. This lowers mid-continent refiners' competitive advantage over coastal refineries. However, this spread was not uncommon in the past and may not be that big of a problem, especially as oil drops below $90 per barrel. Lastly, the export market remains strong: Exports to Central and South America, Europe, and even Asia can give refiners a boost in revenue.
The Future of Mid-Continent Refiners
By Joel South and Taylor Muckerman
-
Apr 23, 2013 at 4:00PM
You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More
NYSE: HFC
HollyFrontier Corporation

Is the incredible run for U.S. refiners over?
Stocks Mentioned

HollyFrontier Corporation
HFC

Western Refining, Inc.
WNR

Valero Energy Corporation
VLO
$122.98
(-1.03%)
$-1.28

Phillips 66
PSX
$93.79
(-0.60%)
$0.57
*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.
Related Articles

HollyFrontier Corp (HFC) Q3 2021 Earnings Call Transcript

HollyFrontier Corp (HFC) Q2 2021 Earnings Call Transcript

Why HollyFrontier Stock Tanked 10% at the Open Today

HollyFrontier (HFC) Q1 2020 Earnings Call Transcript

Why These 3 Oil Refinery Stocks Jumped More Than 30% in April
Premium Investing Services
Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.