US refineries at 95% utilization for 11 weeks, longest since 1997
This digest was compiled by AI from multiple sources — links to the originals are below.
U.S. refineries have run above 95% utilization for 11 straight weeks, the longest stretch in over 25 years, as they chase record margins after the Iran war shut the Strait of Hormuz. Global refinery throughput fell to 81 million bpd in July, nearly 6% below last year, according to the IEA. The U.S. has responded with record fuel exports, but the sustained high runs raise the risk of major equipment failures.
Key Facts
- U.S. refinery utilization has stayed above 95% for 11 consecutive weeks, a level not seen in more than 25 years.
- Global refinery throughput fell to 81 million bpd in July, nearly 5 million bpd below the same month last year, according to the IEA.
- Benchmark U.S. refining margins have averaged more than $50 a barrel since the start of the Iran war, more than double their 10-year average.
- The only previous time U.S. refineries exceeded 100% utilization was in the summer of 1998, according to EIA records.
Historic Utilization Levels
U.S. refineries have operated above 95% utilization for 11 straight weeks, the longest sustained period in more than a quarter century. EIA data going back to 1990 show only three such prolonged stretches, with the closest parallels in 1997 and 1998. In the summer of 1998, the refinery fleet exceeded 100% utilization, the only time this has occurred in EIA records. That 1998 run was driven by low crude prices and strong fuel demand, giving refiners every incentive to keep operations flat out.
Global Supply Shock
A U.S.-Israeli air campaign against Iran in late February triggered the closure of the Strait of Hormuz, disrupting a fifth of global oil supply. Ukrainian attacks on Russian refineries caused Moscow to suspend diesel exports in July. Global refinery throughput fell to 81 million bpd in July, nearly 5 million bpd below the level at this point last year, according to the IEA. The U.S., the world's largest crude producer and second-largest refiner after China, ramped up exports of crude, gasoline, diesel and jet fuel to record levels, according to the EIA.
Margin Windfall
Benchmark margins for converting crude into transportation fuels have averaged more than $50 a barrel since the start of the war, more than double their 10-year average. Many companies postponed planned maintenance and kept plants running at full tilt to capture those profits. U.S. refinery throughput has averaged around 17 million bpd since the start of the conflict, significantly above its five-year average. The question now is how long this can last before something breaks.
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US refineries at 95% utilization for 11 weeks, longest since 1997
