We recently published a list of 8 Best Oil Refinery Stocks To Invest In. In this article, we are going to take a look at where Marathon Petroleum Corporation (NYSE:MPC) stands against other best oil refinery stocks to invest in.

The global oil refining industry has undergone significant shifts over the past few years, driven by geopolitical tensions, changes in consumption patterns, and emerging market demands. As of 2023, the world’s refining capacity was estimated at 103.5 million barrels per day (b/d), according to the U.S. Energy Information Administration (EIA). With the recent disruptions in petroleum markets, such as Russia’s invasion of Ukraine and supply chain challenges due to COVID-19, there is heightened interest in how much refinery capacity will come online in the coming years to meet the rising demand for petroleum products. This interest is primarily centered on new projects expected to be operational by 2028, most of which are in high-demand regions like Asia-Pacific and the Middle East. The EIA’s analysis suggests that between 2.6 million b/d and 4.9 million b/d of additional refining capacity will be added globally over the next four years.

The focus on expanding refining capacity in countries such as China, India, and those in the Middle East stems from their rapid economic and population growth, which translates into a rising need for refined petroleum products. While countries in the Atlantic Basin, including the United States and Europe, have seen stagnating demand, the Asia-Pacific and Middle Eastern markets continue to grow robustly. These regions have also experienced increased investments in refining projects. For instance, Saudi Aramco has consistently been the largest investor in refinery capital expenditures, allocating over $9 billion annually since 2017, while China and India collectively contributed between $15 billion to $28 billion each year.

In contrast, refiners in the Atlantic Basin are expected to face slower demand growth and fierce competition. Refineries in these regions may encounter additional headwinds due to planned closures and the transition to renewable energy sources, which is further complicated by supply chain disruptions and geopolitical conflicts. Refinery expansions in countries like Nigeria and Mexico will also contend with distinct market conditions compared to the surging demand in Asia and the Middle East. Recent geopolitical tensions, such as Houthi attacks in the Red Sea, have increased shipping costs and further isolated the Atlantic and Pacific markets, reinforcing these divergent trends.

The story between Nvidia (NVDA) and SoftBank dates back to 2017, when Masayoshi Son, the investment company’s founder, acquired a $4 billion stake in the chipmaker.

At the time, Nvidia was already making waves with its cutting-edge graphics processing units, which were becoming essential in fields beyond gaming, including artificial intelligence and data centers.

Nvidia was struggling in 2019, with its share price nearly cut in half from its 2018 high. SoftBank sold its stake in Nvidia in 2019, just two years after the initial investment, pocketing more than $3 billion.

But if SoftBank had held on to its original investment in Nvidia, it would be valued more than $15 billion as the chipmaker soared 2600% over the past five years.

What Q3 Big Tech earnings show

Widespread demand for AI-optimized chips, particularly the Blackwell GPUs, is fueling Nvidia’s ascent. These graphics processing units are increasingly used in data centers as they handle the heavy lifting required to train and operate large AI models efficiently.

Nvidia’s major clients include Google parent Alphabet, Microsoft, Meta, and Amazon. Each depends on Nvidia’s technology to develop AI-driven applications and services for cloud data center customers.

The demand for Blackwell chips is so intense that industry heavyweights are vying for a slice. In a now-famous dinner, Oracle’s Larry Ellison and Tesla’s Elon Musk reportedly urged Nvidia CEO Jensen Huang to “take more of our money.”

It’s part of the reason Apple (AAPL) decided to ditch the company’s processors in favor of designing its own Arm-based chips. Since then, Apple has managed to squeeze out more power and battery life from its systems than ever before.

Qualcomm and its Snapdragon X Elite chips also offer impressive battery life compared to competing Intel-based machines. But the second-gen Core Ultra is set to change that, using less power while offering comparable performance.

Intel’s Client business is still incredibly important, bringing in the majority of the company’s revenue, so any potential to increase sales there could be a boon for the chip builder.

By: Attiya Zainib, Finance.yahoo / October 12, 2024