Marathon CEO: heavy crude spreads to widen second half 2025

Marathon CEO: heavy crude spreads to widen second half 2025

Title: Marathon CEO: Heavy Crude Spreads to Widen Second Half 2025

Marathon Petroleum Corp (MPC.N) CEO Maryann Mannen recently stated that heavy crude spreads are expected to widen during the second half of 2025. This prediction comes amidst a backdrop of fluctuating oil prices and increased production from OPEC+ nations.

The second-quarter results from Marathon Petroleum Corp revealed that the company's refining margins improved significantly, with diesel cracks averaging $17 per barrel during the quarter [3]. This rebound in margins was driven by a post-pandemic recovery and war-related supply disruptions, which have boosted demand for key products [3]. The company's CEO highlighted that the team achieved 97% utilization and 105% margin capture, indicating a strong operational performance [3].

However, the outlook for the second half of the year is less certain. The Organization of the Petroleum Exporting Countries (OPEC+) and its allies have agreed to increase oil production in September by 547,000 barrels a day, which could potentially lead to an oversupply situation [1]. This decision was made despite concerns about the demand side of the market, with some analysts predicting a slowdown in economic growth for the second half [1].

Moreover, geopolitical tensions, such as the U.S. president's threat to impose secondary tariffs on Russian crude purchasers like India, could further disrupt the market [1]. India, the largest buyer of Russian crude oil by sea, imported about 1.75 million barrels per day (bpd) from January to June, an increase of 1% compared to a year earlier [1]. The latest U.S. trade tariffs could dampen demand for fuel and slow down economic growth [1].

Saudi Aramco, the world's largest oil company, also reported a year-on-year drop in revenues amid lower crude prices in the second quarter [2]. Despite this, Aramco CEO Amin Nasser anticipated oil demand in the second half of 2025 to be more than two million barrels per day higher than the first half [2]. However, the actual demand may not meet these expectations due to the uncertain economic outlook and potential supply disruptions [1].

In conclusion, while Marathon Petroleum Corp's second-quarter results were encouraging, the outlook for the second half of 2025 is clouded by concerns about oversupply, trade tensions, and economic slowdowns. The widening of heavy crude spreads is a reflection of these market uncertainties.

References:
[1] https://energynews.oedigital.com/crude-oil/2025/08/05/oil-drifts-lower-on-rising-supply-concerns-about-demand
[2] https://www.cnbc.com/2025/08/05/saudi-aramco-q2-earnings-2025.html
[3] https://www.reuters.com/business/energy/top-us-refiner-marathon-petroleum-beats-quarterly-profit-higher-refining-margins-2025-08-05/