With Diesel Margins Stretched, Production Is Underway at Nevada’s Only Crude Oil Refinery

News Provided by Wall Street Investor on behalf of Sky Quarry Inc.

WOODS CROSS, Utah, Oct. 23, 2026 (GLOBE NEWSWIRE) — Wall Street Investor News Commentary – Diesel is where the U.S. fuel market is tightest. The average U.S. on-highway diesel price reached $6.276 a gallon on October 19, up $2.656 from a year earlier, according to the U.S. Energy Information Administration, and in its October Short-Term Energy Outlook the agency said it expects U.S. distillate fuel inventories to remain below the 2021–2025 average throughout the forecast period, keeping diesel crack spreads elevated and retail prices above $4 per gallon through 2027. For refiners, that spread between the cost of crude and the price of finished fuel is where the money is made, and it is drawing attention to plants of every size, from coastal giants to a single refinery in eastern Nevada. Companies mentioned in today’s commentary include: Sky Quarry Inc. (NASDAQ: SKYQ), PBF Energy Inc. (NYSE: PBF), CVR Energy, Inc. (NYSE: CVI), Calumet, Inc. (NASDAQ: CLMT), Marathon Petroleum Corporation (NYSE: MPC).

A Global Squeeze Reaches the Rack

The pressure on diesel is global. In its October Oil Market Report, the International Energy Agency said that while global diesel prices have eased from all-time highs of more than $200 a barrel reached in September, benchmarks remain nearly double the price of crude oil and their pre-crisis levels. The IEA said continued disruptions to Middle East exports, compounded by lower supply from Russia and some Asian countries, cut global diesel and gasoil availability by 1.7 million barrels per day in the third quarter compared with a year earlier.

The EIA expects some relief, but not a quick return to normal. “Although we expect crack spreads will decrease, we forecast they will remain high relative to historical averages,” the agency wrote in its October outlook. It also reported that East Coast distillate fuel inventories fell 32% below their five-year seasonal average in September.

That backdrop showed up in second-quarter results across the industry, with several refiners reporting crack spreads and margins roughly double their year-earlier levels. Third-quarter results are due over the next three weeks, and one small refiner in the Intermountain West is now moving into the market with its own production.

Production Underway at Eagle Springs

Sky Quarry Inc. (NASDAQ: SKYQ), an energy infrastructure company focused on domestic refining and resource development, announced on October 21 that refined petroleum production is underway at its Eagle Springs Refinery near Ely, Nevada. Operated by wholly owned subsidiary Foreland Refining Corporation, Eagle Springs is Nevada’s only crude oil refinery, with a stated nameplate processing capacity of approximately 5,000 barrels of crude oil per day, and it produces diesel and distillate fuels, vacuum gas oil, naphtha and liquid paving asphalt. Production follows the Company’s receipt of its Nevada air permit in September, completion of refinery repairs and upgrades, and a successful restart.

“Moving from a refinery restart to actual petroleum production is a tremendous milestone for Sky Quarry and our shareholders,” said Marcus Laun, Chief Executive Officer of Sky Quarry. “The plant is operating as expected. We are excited by the support we are getting from our community of suppliers and customers.”

Sky Quarry calculated that Salt Lake City diesel rack prices indicated a crack spread of approximately $133 to $136 per barrel on October 21, compared with approximately $33 per barrel in January. The Company describes that range as a regional pricing indicator calculated from market benchmarks, and notes that its actual refining margins will reflect its own feedstock acquisition costs, transportation, operating expenses, product yields and realized sales prices.

With production underway, Sky Quarry said it is focused on increasing throughput, expanding product sales and generating operating cash flow. The Company intends to increase throughput progressively while strengthening operating reliability, securing additional crude supplies, optimizing product yields and expanding commercial sales arrangements, and it is evaluating opportunities to broaden its crude sourcing network, including potential future integration with its PR Spring resource development operations in Utah.

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How the Larger Refiners Are Positioned

PBF Energy Inc. (NYSE: PBF) reported second-quarter 2026 net income attributable to PBF Energy Inc. of $906.4 million, or $7.54 per share, on throughput of 887.3 thousand barrels per day. Its Dated Brent (NYH) 2-1-1 crack averaged $43.48 per barrel in the quarter, compared with $22.24 a year earlier. PBF will release third-quarter results on October 29.

“The underlying fundamentals for refining remain incredibly strong with tight global supply and demand balances,” said Matt Lucey, PBF’s President and CEO.

CVR Energy, Inc. (NYSE: CVI) reported second-quarter petroleum throughput of 212,965 barrels per day, up from 172,149 a year earlier, with crude utilization of 98.4%. The Group 3 ULSD crack spread, a regional diesel benchmark, averaged $55.59 per barrel in the quarter, compared with $26.87 a year earlier.

“CVR Energy posted another quarter of strong operating results across our system, with crude utilization of 98 percent and ammonia plant utilization of 99 percent,” said Dane Neumann, CVR Energy’s Chief Executive Officer.

Calumet, Inc. (NASDAQ: CLMT) reported second-quarter Adjusted EBITDA of $159.3 million, compared with $55.1 million a year earlier, and said results in its specialty products segment reflected a constructive market underpinned by a global shortage in specialty products. On October 15, the company gave notice for redemption of $150 million of its 9.75% Senior Notes due 2028, which it said will bring debt retired since July 2026 to approximately $265 million.

“Our integrated specialties platform delivered exceptional results in a strong margin environment, supporting $115 million of debt retirement in July,” said Todd Borgmann, CEO of Calumet.

Marathon Petroleum Corporation (NYSE: MPC) reported second-quarter net income attributable to MPC of $5.1 billion, or $17.73 per diluted share, with a Refining & Marketing margin of $36.33 per barrel, versus $17.58 a year earlier, and said results were driven primarily by higher crack spreads in all regions. The company lists a 90 thousand barrel per day distillate hydrotreater project at Galveston Bay, designed to increase supply of high-value ULSD to domestic and export markets, with expected in-service at year-end 2027, and it will hold its third-quarter conference call on November 3.

“Strong planning, commercial, and operational execution enabled safe and reliable operations to meet resilient consumer demand,” said Maryann Mannen, Chairman, President and Chief Executive Officer of Marathon Petroleum.

Track the Signals Before the Crowd

Refining stocks can move hard on a crack spread, an outage or a production update, and attention often builds before the crowd notices. Eagle Eye is a real-time investor signal-intelligence platform that surfaces sentiment shifts, news flow and trending tickers as they form. Watch it live at eagle-eye.dev.

Article Source: Sky Quarry Inc. news release dated October 21, 2026.

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