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U.S. refiners' profit expectations improve, and the cost advantage of purchasing heavy crude oil will become more apparent in the second half.
The profitability of U.S. refiners is expected to improve in the second half of the year due to a rebound in heavy crude oil supplies, particularly from Canada and the Middle East. Refiners are adjusting their plants to process more discounted heavy crude oil, and the price spread is expected to widen. Regulatory adjustments in California may also promote a recovery in oil drilling.