No-Win Oil Market Saps Profits for Refiners and Producers: Chart

Why This Drop in Oil Prices Is Different From Last Time

Welcome to an oil market where everybody loses. Oil prices have slid 17 percent from a June peak, putting renewed pressure on producers. Refiners face shrunken margins, having pumped themselves into a price-killing fuel glut of their own. Tuesday, BP Plc posted a 45 percent slump in second-quarter earnings as its producing and refining divisions both suffered, while Valero Energy Corp.’s net income dropped 40 percent.

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