What Is a Refinery Margin?
A refinery margin is the difference between the value of products a refinery produces and the cost of crude oil it processes. While individual crack spreads measure single product margins, a refinery margin index models the full product slate.
The Product Yield Concept
A refinery doesn't produce 100% gasoline from crude oil. A typical barrel yields a mix of products. The yield percentages vary by refinery type and region:
USGC (US Gulf Coast) Cracking Margin
| Product | Yield | Benchmark |
|---|---|---|
| Gasoline | 50% | RBOB Gasoline |
| Diesel | 30% | Heating Oil / ULSD |
| Jet Fuel | 10% | Jet Fuel |
| Fuel Oil | 10% | Heating Oil |
Crude input: Brent. USGC refineries are the most complex in the world, optimized for light sweet crude.
Singapore Complex Margin
| Product | Yield |
|---|---|
| Mogas (gasoline) | 30% |
| Gasoil (diesel) | 35% |
| Jet/Kerosene | 15% |
| Naphtha | 10% |
| Fuel Oil | 10% |
Crude input: Dubai. Singapore is the Asian refining hub, processing medium sour crude.
NW Europe Cracking Margin
Crude input: Brent. Yields: 40% gasoline, 35% diesel, 15% jet, 10% fuel oil. European refineries are diesel-heavy, reflecting the continent's diesel-dominated vehicle fleet.
The "Crude Surplus vs Product Scarcity" Paradox
In 2026, the world's bottleneck is not crude oil extraction but refining capacity. Global refinery margins surged because:
- The West shuttered 4+ million b/d of capacity (2020-2024)
- New mega-refineries in the Middle East and Asia are still ramping up
- Middle East disruptions throttled refined product exports through Hormuz
- Jet fuel demand recovered while capacity didn't
The result: USGC margins above $40/bbl — far above the historical $10-20 average.
Get Refinery Margins via API
curl -H "Authorization: Token YOUR_KEY" \ "https://api.oilpriceapi.com/v1/spreads/margin?index=usgc" # All three regional margins curl -H "Authorization: Token YOUR_KEY" \ "https://api.oilpriceapi.com/v1/spreads/margin/all" # Returns: margin_usd_bbl, crude_input, product_basket # (with yield % and price for each product), signal, percentile