US refining margins to surge in 2007

12/29/06 - Credit Suisse

NEW YORK, December 29 (newratings.com) - Analysts at Credit Suisse say that US refining margins are likely to surge again in 2007.

In a research note published this morning, the analysts mention that refining margins jumped to new record levels in 2006, against the backdrop of robust demand, limited capacity additions and new market dynamics. US composite refining margins averaged $14.31/bbl this year, as compared to $13.62/bbl in 2005, the analysts say. Independent refiners could deliver another period of higher-than-expected performance, with the switch being made from winter to summer specifications, Credit Suisse adds.