AAflyer
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Reuters News Service
NEW YORK - Oil refiners cut fuel production in some states this week to counter slipping profit margins, drawing fire from critics already incensed by soaring gasoline prices and Big Oil's recent record profits.
San Antonio-based Valero Energy Corp., the nation's largest fuel producer, said Tuesday it slowed output from its refinery in Ohio by more than 10 percent for economic reasons, even as the company announced its 10th straight quarter of record earnings.
Earlier in the week, British energy giant BP slashed fuel production from its refinery in Whiting, Ind., by 10 to 15 percent because of lower profit margins in the region, market sources said. BP declined to comment.
U.S. gasoline prices averaged $2.34 a gallon Tuesday, nearly 50 cents higher than a year ago.
Oil refiners traditionally slow fuel production when profit margins fall into the red — something that happens when the cost of crude rises too high relative to the selling price of gasoline and heating oil.
The National Petrochemical and Refiners Association, which represents several U.S. oil companies, said the slowdown by some refiners is not a threat to the nation's supply and should be seen as a normal seasonal variation.
"Inventories in that part of the country are high and pipelines are full," the association said in a prepared statement.
Politicians and consumer groups set off a fresh wave of calls for special taxes against Big Oil after Exxon Mobil Corp. on Monday posted a record profit of $10.7 billion in the latest quarter and more than $36 billion for the year.
NEW YORK - Oil refiners cut fuel production in some states this week to counter slipping profit margins, drawing fire from critics already incensed by soaring gasoline prices and Big Oil's recent record profits.
San Antonio-based Valero Energy Corp., the nation's largest fuel producer, said Tuesday it slowed output from its refinery in Ohio by more than 10 percent for economic reasons, even as the company announced its 10th straight quarter of record earnings.
Earlier in the week, British energy giant BP slashed fuel production from its refinery in Whiting, Ind., by 10 to 15 percent because of lower profit margins in the region, market sources said. BP declined to comment.
U.S. gasoline prices averaged $2.34 a gallon Tuesday, nearly 50 cents higher than a year ago.
Oil refiners traditionally slow fuel production when profit margins fall into the red — something that happens when the cost of crude rises too high relative to the selling price of gasoline and heating oil.
The National Petrochemical and Refiners Association, which represents several U.S. oil companies, said the slowdown by some refiners is not a threat to the nation's supply and should be seen as a normal seasonal variation.
"Inventories in that part of the country are high and pipelines are full," the association said in a prepared statement.
Politicians and consumer groups set off a fresh wave of calls for special taxes against Big Oil after Exxon Mobil Corp. on Monday posted a record profit of $10.7 billion in the latest quarter and more than $36 billion for the year.
