Oil Tops $90, U.S. Gas $3.32, Widening Marathon Petroleum Margins
Oil climbed above $90 per barrel—the first since October 2023—pushing U.S. gasoline to $3.320 per gallon on March 6, an 11.3% weekly rise. Diesel jumped 15.3% to $4.330 after a seven-day Strait of Hormuz closure halted 20% of global flows, widening MPC’s crack spreads.
1. Crude and Fuel Price Surge
WTI crude surpassed $90 per barrel for the first time since October 2023, fueling an 11.3% jump in the U.S. average gasoline price to $3.320 per gallon on March 6. Diesel saw an even steeper increase, rising 15.3% to $4.330 per gallon, as a seven-day disruption in the Strait of Hormuz halted roughly 20% of daily oil shipments.
2. Implications for Marathon Petroleum
Higher crude costs and surging retail fuel prices typically expand crack spreads for refiners. Marathon Petroleum stands to benefit from wider margins as the gap between crude input costs and refined product prices increases, potentially boosting quarterly throughput profits and cash flow.