Murphy USA Margins Gain as Wholesale Gasoline Falls 18%
Wholesale gasoline futures have plunged 18% from a high of $3.22 to $2.65 per gallon in recent days. Murphy USA’s retail operations can capture widened downstream margins as average pump prices rose 43 cents this week to $3.539 per gallon before eventually adjusting lower.
1. Wholesale Gasoline Prices Drop Sharply
Wholesale gasoline futures have tumbled 18% from $3.22 to $2.65 per gallon within days as crude retreated 30% from its recent peak, marking one of the most volatile high-to-low swings since 2020.
2. Retail Fuel Prices Remain Elevated
The national average pump price climbed to $3.539 per gallon this week – up 43 cents from seven days prior – while California drivers faced averages above $5.29, maintaining elevated retail levels despite plummeting wholesale costs.
3. Margin Expansion for Murphy USA
Murphy USA’s downstream operations stand to benefit from widened margins as wholesale inputs drop faster than pump prices adjust, potentially boosting crack spreads and near-term profitability until the 'rockets and feathers' effect reverses.