Supply Chain Optimization

Oil Is Down – Why Isn’t Diesel A Lot Cheaper? Port Problems

 

Oil is down substantially, yet diesel hasn’t declined nearly as much because refiners are making more money.  Over the past year, refiners have averaged $10/barrel for processing – the so-called “crack spread”.  Now the crack spread is running around $25/barrel.
 
Meishan terminal at China’s Ningbo port, the third largest port in the world, closed for 2 weeks because of a single COVID case.