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U.S. fuel makers run refineries at fastest pace of Iran war
Output is highest since September 2019
A Valero refinery in Corpus Christi, Texas. (Brandon Bell/Getty Images North America via Bloomberg)
Key Takeaways:
- U.S. refineries processed 17.4 million barrels of crude daily last week, the highest rate since the U.S.-Iran conflict began and since September 2019.
- Fuel markets remain tight as disruptions in the Persian Gulf and damage to Russian refineries boost diesel margins above $100 a barrel and spur higher refinery output.
- Refiners continue maximizing production, with jet fuel exceeding 2 million barrels daily for an 18th straight week while gasoline and other fuel outputs also increased.
U.S. fuel makers are running refineries harder than at any point since the outbreak of the U.S.-Iran conflict, part of an all-out effort to keep global markets supplied with diesel, jet fuel and gasoline.
Refineries processed 17.4 million barrels of crude oil on a daily basis last week, according to the Energy Information Administration. That topped the previous wartime high-water mark set in late July, and surpassed any point since September 2019.
A fuel crisis is ripping through markets worldwide, owing to the disruption of shipping in and around the Persian Gulf, as well as damage wrought on Russian refineries by Ukrainian drones.
The tightness is particularly acute in diesel markets, where the margins captured by producers have swelled to more than $100 a barrel.
The appeal of outsized profits has pushed U.S. refiners to run as hard as possible, making the country an global supplier of last resort.
Meanwhile, jet-fuel production exceeded 2 million barrels a day for the 18th consecutive week. Gasoline output, while still below the seasonal average, ticked higher, as did production of residual fuel oil, propane and propylene.
