Oil refining companies have had quite a good run over the past 12 months. As measured by the MVIS™ Global Oil Refiners Index, global refiners are up 13.5% since the end of August 2016.

MVIS Global Oil Refiners
(August 2016 - August 2017)

Source: MV Index Solutions

Over this period, crack spreads (and refiners) have, in general, been helped by lower oil prices. However, in the second quarter of 2017, some of the leading refiners benefitted from a number of other factors. These included surging cash flow and higher refinery output (as a result of greater capacity utilization).

Relative to other parts of the energy space, the refining industry has produced impressive results. It will be interesting to see what the second half of the year brings with it.

About the Author:

Brandon Rakszawski joined VanEck in 2011 and serves as product manager of its hard assets and U.S. strategic equity ETF lineup. Prior to joining VanEck, he was with Federated Investors. He earned a bachelor’s degree from Slippery Rock University of Pennsylvania.

The article above is an opinion of the author and does not necessarily reflect the opinion of MV Index Solutions or its affiliates.