U.S. refinery utilization hits 96.2% as fuel markets tighten

AI digestMimile.ai EditorialJuly 23, 2026 at 05:30 PM

This digest was compiled by AI from multiple sources — links to the originals are below.

U.S. refinery utilization averaged 96.2% in the week to July 17, the highest in years, as American fuel exports surged to record levels amid tight global markets. The Midwest and Rocky Mountains regions operated at full capacity, according to the EIA. Commercial oil stocks remain 6% below the five-year average, while wholesale diesel futures jumped 26% in July.

Record Refinery Runs

U.S. refinery utilization hit 96.2% in the week ending July 17, up from 94.7% a year earlier, according to the EIA's Weekly Petroleum Status Report. PADD 2 (Midwest) and PADD 4 (Rocky Mountains) reached 100% capacity. The high runs come as American fuel exports climbed to record levels, driven by global supply disruptions from the Iran conflict and the Strait of Hormuz closure.

Tight Inventories and Margins

U.S. commercial crude stocks are 6% below the five-year seasonal average, while inventories at Cushing, Oklahoma, and the Strategic Petroleum Reserve sit at multi-year and four-decade lows, respectively. Wholesale diesel futures surged 26% in July, per Financial Times data. Globally, refining margins for gasoline and diesel hit new records after Middle East escalation, Russia's diesel export ban, and falling fuel inventories.

Asian Refinery Risks

Asian refiners that expected a flood of Middle Eastern crude in August now face potential delivery delays due to renewed hostilities. This could thwart plans to ramp up processing rates. U.S. and European refineries are near capacity, but Asian throughput may not increase as scheduled, tightening global fuel supplies further.

What's Next

The EIA will release its next weekly report on July 24, which may show further inventory draws or builds. It remains unclear whether hurricane season or unplanned outages will test the U.S. fuel system's resilience amid near-full refinery utilization and low stocks.

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U.S. refinery utilization hits 96.2% as fuel markets tighten

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U.S. refinery utilization hits 96.2% as fuel markets tighten

Record Refinery Runs

Tight Inventories and Margins

Asian Refinery Risks

What's Next

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