Boston’s pain is oil refiners’ gain. Cold weather combined with the persistent problem of natural-gas pipeline bottlenecks in the Northeast translate into higher demand for fuel oil to run generators and heat homes. Meanwhile, that same freeze caused several East Coast refineries to curtail output last week. Futures for fuel oil and diesel have jumped, meaning big profits for those refiners that can keep producing. The 3:2:1 crack spread—a benchmark theoretical refining margin—has jumped 50% to $18 a barrel in roughly the past month, according to FactSet. Futures prices for ultralow-sulfur diesel are at their highest ratio to the West Texas Intermediate crude oil benchmark ever, according to a report from JBC Energy on Tuesday. Additionally, a strike involving the United Steelworkers is spreading slowly across the U.S. refining sector, tightening the products market further. Winter weather may pass, but one other tailwind for refiners has re-emerged in […]