U.S. Group II Producers Leverage Economies of Scale

摘要

U.S. Group II refiners maintained strong production rates during the second half of 2014 that pushed inventories to multi-year highs, despite the substantial drop in base oil prices. The development reflects the impact of relatively firm margins because of the even steeper fall in crude prices. It also highlighted a strength that large U.S. Gulf Coast refiners have more than most other plants in the world — economics of scale.