Oil Refinery: Oil Sector News and Market Coverage

An oil refinery processes crude oil into finished petroleum products including gasoline, diesel, jet fuel, heating oil, lubricants, and petrochemical feedstocks. The specific product mix depends on refinery configuration and market demand.

When refinery capacity is reduced by outages or maintenance, the supply of refined fuels tightens and prices at the pump typically rise. Surplus refinery capacity can push fuel prices lower as refiners compete for crude feedstock.

A crack spread is the difference between the price of crude oil and the petroleum products refined from it. It measures refining profit margins and is a closely watched indicator of downstream oil market health.

Refineries shut down for scheduled maintenance known as turnarounds, unplanned outages caused by mechanical failures or accidents, and regulatory compliance work. Geopolitical events such as sanctions can also force refinery closures.

The world's largest oil refineries by capacity are located in India, South Korea, Saudi Arabia, and the United States. India's Jamnagar complex operated by Reliance Industries is the single largest refinery complex globally.