Inventories

6 Months Ended

Jun. 30, 2020

Inventories consist of the following components:



	June 30, 2020			December 31, 2019
	(In thousands)
Crude oil	$	537,863		$	489,169
Other raw materials and unfinished products⁽¹⁾	301,956			394,045
Finished products⁽²⁾	668,955			639,938
Lower of cost or market reserve	(530,923		)	(240,363		)
Process chemicals⁽³⁾	33,677			36,786
Repair and maintenance supplies and other ⁽⁴⁾	162,173			154,627
Total inventory	$	1,173,701		$	1,474,202


(1)	Other raw materials and unfinished products include feedstocks and blendstocks, other than crude.


(2)	Finished products include gasolines, jet fuels, diesels, lubricants, asphalts, LPG’s and residual fuels.


(3)	Process chemicals include additives and other chemicals.


(4)	Includes RINs.

Our inventories that are valued at the lower of LIFO cost or market reflect a valuation reserve of $530.9 million and $240.4 million at June 30, 2020 and December 31, 2019, respectively. The December 31, 2019 market reserve of $240.4 million was reversed due to the sale of inventory quantities that gave rise to the 2019 reserve. A new market reserve of $530.9 million was established as of June 30, 2020 based on market conditions and prices at that time. The effect of the change in lower of cost or market reserve was a decrease to cost of products sold totaling $269.9 million for the three months ended June 30, 2020 and an increase to cost of products sold totaling $47.8 million for the three months ended June 30, 2019, respectively, and an increase to cost of products sold totaling $290.6 million for the six months ended June 30, 2020 and a decrease to cost of products sold totaling $184.5 million for the six months ended June 30, 2019, respectively.

At June 30, 2020, the LIFO value of inventory, net of the lower of cost or market reserve, was equal to current costs.

In connection with our announcement of the conversion of our Cheyenne Refinery to renewable diesel production, we recorded a reserve of $6.2 million against our repair and maintenance supplies inventory. This charge was recorded in operating expenses in the second quarter of 2020.