Recession squeezes Imperial's refinery profits

The recession has squeezed profits on Imperial Oil's refining business even more in the three months ending in June than with the earlier quarter, the company's CEO told Reuters on Thursday.

Bruce March declined to say whether Canada's second largest oil refiner will report another loss from the refining business, as it did in July.

March said demand has dropped so much it has narrowed the price spread between gasoline and diesel oil in Canada and the U.S. to "the lowest they've been in a long, long time."

The company reported a $38-million loss on its refining operations this summer.

Imperial owns four refineries in Canada and supplies nearly 2,000 Esso service stations.

Its next earnings will be released on Oct. 27.

Imperial shares closed Thursday at $44.33, up $1.33, on the Toronto Stock Exchange.