Close Menu
Money MechanicsMoney Mechanics
    What's Hot

    The End of 2%? The Case for a Higher Inflation Target

    October 16, 2025

    The Truth About Entitlements (and Reverse Mortgages)

    October 16, 2025

    How to Prevent an Emergency When Flying With Your Pet

    October 16, 2025
    Facebook X (Twitter) Instagram
    Trending
    • The End of 2%? The Case for a Higher Inflation Target
    • The Truth About Entitlements (and Reverse Mortgages)
    • How to Prevent an Emergency When Flying With Your Pet
    • The Best Gold Mutual Funds to Buy Right Now
    • Do You Know Your ABCDs? The Essential Medicare Parts Quiz
    • The Biggest Money Fears of the Ultra-Rich
    • The Economy Is on a Knife’s Edge
    • Traders at top hedge funds take home 25% of profits
    Facebook X (Twitter) Instagram
    Money MechanicsMoney Mechanics
    • Home
    • Markets
      • Stocks
      • Crypto
      • Bonds
      • Commodities
    • Economy
      • Fed & Rates
      • Housing & Jobs
      • Inflation
    • Earnings
      • Banks
      • Energy
      • Healthcare
      • IPOs
      • Tech
    • Investing
      • ETFs
      • Long-Term
      • Options
    • Finance
      • Budgeting
      • Credit & Debt
      • Real Estate
      • Retirement
      • Taxes
    • Opinion
    • Guides
    • Tools
    • Resources
    Money MechanicsMoney Mechanics
    Home»Earnings & Companie»Energy»Stable crude oil prices, increasing refinery margins in third quarter of 2025
    Energy

    Stable crude oil prices, increasing refinery margins in third quarter of 2025

    Money MechanicsBy Money MechanicsOctober 6, 2025No Comments4 Mins Read
    Facebook Twitter LinkedIn Telegram Pinterest Tumblr Reddit WhatsApp Email
    Stable crude oil prices, increasing refinery margins in third quarter of 2025
    Share
    Facebook Twitter LinkedIn Pinterest Email



    In-brief analysis

    October 6, 2025



    daily Brent crude oil price



    Data source: CME Group, Bloomberg L.P.
    Note: 3Q25=third quarter of 2025



    Crude oil prices were relatively stable in the third quarter of 2025 (3Q25), ending the quarter just 9 cents per barrel (b) less than they started, while refinery margins increased to their highest levels so far this year. In this quarterly update, we review petroleum markets price developments in 3Q25, covering crude oil prices and refinery margins.

    Crude oil prices

    The Brent crude oil price traded in a narrow range in 3Q25 as expected increased production from OPEC countries offset geopolitical tensions. The Brent price began the quarter averaging $70/b in July, following the Israel-Iran 12-day war at the end of 2Q25, before declining to an average of $67/b in August and $68/b in September.

    OPEC+ announcements in July, August, and September to increase production put downward pressure on crude oil prices. Uncertainty related to global trade flows and potential macroeconomic impacts on petroleum consumption have also increased concerns of an oversupplied market. However, so far in 3Q25, increases to global crude oil supplies have not contributed to widespread increases in observable inventories. According to our Weekly Petroleum Status Report, U.S. crude oil inventories have remained closer to the five-year (2020–24) low than the five-year average.

    Increased geopolitical risk offset downward price pressure from increased supply. In 3Q25, Russia increased attacks on Ukraine, and Ukraine successfully targeted Russia’s energy infrastructure. In August, the United States levied a 25% punitive tariff on India for purchasing Russia’s crude oil, raising total U.S. tariffs on the country to 50%. The European Union is planning additional punitive measures against processors of Russia’s crude oil following Russia’s military flights over Estonia, Poland, and Romania. In the Middle East, drone attacks by unknown saboteurs on oil fields in Iraq have contributed to rising regional risks as well. This tension comes alongside ongoing risks associated with continued military strikes between Israel and Hamas.

    Refinery margins

    Diesel crack spreads—a measure of the refinery margins for diesel—at New York Harbor reached a high of 85 cents per gallon (gal) in July, its highest level since February 2024 and almost double the crack spread from the same time last year. This rise was partly in response to elevated pressure from international markets as geopolitical tensions threatened supplies from Middle East refiners. These pressures eased going into August, and diesel crack spreads fell as low as 60 cents/gal, dropping below the previous five-year (2020–24) average. Diesel crack spreads began to climb slowly again in September. This climb partly reflects renewed international pressure on distillate markets following disruptions to Russia’s distillate production and a Russian ban on diesel exports following attacks on its refineries.

    New York Harbor gasoline and diesel refinery margins



    Data source: Bloomberg LP
    Note: The gasoline crack spread is the difference between the RBOB New York Harbor spot price and the Dated Brent Spot price. The diesel crack is the difference between the ultra-low sulfur diesel New York Harbor spot price and the Dated Brent Spot price. 3Q25=second quarter of 2025


    Unlike distillate, refinery margins for gasoline began the quarter below the previous five-year (2020–24) average because of relatively high inventories on the East and West Coasts in July and early August. U.S. refinery margins for gasoline tend to decrease toward the end of summer, partly because of the shift from summer grade gasoline, which is more expensive to produce, to winter grade gasoline. This year, refinery margins decreased less than usual during the third quarter because of above-average motor gasoline inventory draws, bringing inventories below 2024 levels. In early September, gasoline crack spreads were more than double their level from the same time last year. As a result, the gasoline refinery margin exceeded its five-year average in mid-August for the first time since last April.

    Principal contributors: Petroleum & Liquid Fuels Markets Team



    Source link

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Telegram Email
    Previous ArticleCapital abundance “energizing” for carriers and brokers. AI is transformational: Willis
    Next Article Abbe Group to acquire Oji Fibre Solutions’ Australian operations
    Money Mechanics
    • Website

    Related Posts

    The world needs $18.2 trillion in oil and gas investment – Oil & Gas 360

    October 16, 2025

    LVMH, Other Luxury Companies Are Still Cashing In on the U.S. Market

    October 16, 2025

    Norway to boost spending from Its $2 trillion oil fund in 2026 budget – Oil & Gas 360

    October 15, 2025
    Add A Comment
    Leave A Reply Cancel Reply

    Top Posts

    The End of 2%? The Case for a Higher Inflation Target

    October 16, 2025

    The Truth About Entitlements (and Reverse Mortgages)

    October 16, 2025

    How to Prevent an Emergency When Flying With Your Pet

    October 16, 2025

    The Best Gold Mutual Funds to Buy Right Now

    October 16, 2025

    Subscribe to Updates

    Please enable JavaScript in your browser to complete this form.
    Loading

    At Money Mechanics, we believe money shouldn’t be confusing. It should be empowering. Whether you’re buried in debt, cautious about investing, or simply overwhelmed by financial jargon—we’re here to guide you every step of the way.

    Facebook X (Twitter) Instagram Pinterest YouTube
    Links
    • About Us
    • Contact Us
    • Disclaimer
    • Privacy Policy
    • Terms and Conditions
    Resources
    • Breaking News
    • Economy & Policy
    • Finance Tools
    • Fintech & Apps
    • Guides & How-To
    Get Informed

    Subscribe to Updates

    Please enable JavaScript in your browser to complete this form.
    Loading
    Copyright© 2025 TheMoneyMechanics All Rights Reserved.
    • Breaking News
    • Economy & Policy
    • Finance Tools
    • Fintech & Apps
    • Guides & How-To

    Type above and press Enter to search. Press Esc to cancel.