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How Has Chevron’s Marketing Margin Shaped Up in 3Q16?



Chevron’s marketing margin

Chevron’s (CVX) regional marketing margin indicators suggest an across-the-board fall in its margins. The US West Coast (or USWC) weighted DTW (dealer tank wagon) to spot margin fell 12% YoY (year-over-year), and the US East Coast (or USEC) Houston MOGAS (motor gasoline) rack to spot margin fell 24% YoY. The Asia-Pacific margin fell 29% YoY.

On a sequential basis, the USWC margin rose, but the USEC and Asia-Pacific margins fell. The USWC margin rose 3% quarter-over-quarter to $13 per barrel in 3Q16. The USEC and Asia-Pacific margins fell 8% each quarter-over-quarter to $3.7 and $7.5 per barrel, respectively, in 3Q16.

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