US gasoline refining profit slumped to lowest level since 2008 as Covid-19 fears grow


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US gasoline refining profit slumped to lowest level since 2008 as Covid-19 fears grow

On Monday, the 16th of March 2020, profit margin of the US gasoline refining Goliaths had tumbled nearly 95 per cent and even had turned negative for a brief period of time, as the prices of refined hydrocarbons had been falling faster than the crude oil futures’ prices over fears that a majority of world’s population might need to remain off the roads for an uncertain timeframe amid growing number of newer coronavirus cases across the world.

As a matter of fact, as of Tuesday (March 17th) night the world had witnessed 747 new deaths from coronavirus infection and 12,327 newer coronavirus cases, while analysts said the number of infected patients could be the tip of an iceberg given the lack of testing kits and improper testing measures across the globe.

More importantly, when it comes to the United States, the US gasoline demand is expected to hit a rock-bottom in a near-term outlook as manufacturing hubs alongside businesses remained shut down over frets of coronavirus and a number of US state and local Governments had been urging the people to stay at home to slow down the spread of the contagion.

Amid such slanderous outlook, US gasoline refiners had posted a profit margin of 28 cents per barrel on Monday (March 16th), marking up its lowest figure since the December of 2008 and pointing towards another strong signal that the US economy would highly likely to contract much earlier-than-anticipated.