"Upcoming Refineries Pose Potential Threat to Refiner Stocks and Gas Prices"
Two new refineries in Mexico and Nigeria are expected to start production next year, potentially adding 1 million barrels per day of fuel capacity and impacting refining stocks and gasoline prices. The increased capacity could slow or reverse the gains of refining stocks and hold down gasoline prices. Analysts predict that cracks, a measurement of margins used for refiners, will drop in the coming years. However, in the short term, refiner stocks and gasoline prices could continue to climb due to low fuel inventories and increased pressure from refinery outages and maintenance. Russia's temporary ban on gasoline and diesel exports may further tighten the global fuel market, offering potential upside for U.S. refiners.