U.S. Refineries Run at Near-Capacity as Global Fuel Markets Tighten

With U.S. refinery utilization hitting 96.2% as of July 17, American fuel exports have surged to record levels. The strain follows the closure of the Strait of Hormuz and escalating regional conflicts, leaving the domestic energy market increasingly vulnerable to sudden supply disruptions or unforeseen operational outages.

Today, 15:34· Money Talk· 621 reads

U.S. Refineries Run at Near-Capacity as Global Fuel Markets Tighten

Midwestern and Rocky Mountain facilities are currently operating at 100% capacity, pushing the national average toward historic highs. Despite a marginal build in commercial oil stocks last week, inventories remain 6% below the five-year average. Meanwhile, reserves at the Cushing hub and the Strategic Petroleum Reserve languish at multi-year and four-decade lows, respectively.

Rising wholesale diesel futures—up 26% this month—signal the intensity of the current supply crunch. Global refining margins for gasoline and diesel have climbed to record peaks as Russia’s export bans and Middle Eastern hostilities disrupt traditional trade routes. Asian refiners, previously expecting a steady influx of crude, now face delivery delays that threaten to derail production schedules and exacerbate an already fragile global supply chain.

U.S. Refineries Run at Near-Capacity as Global Fuel Markets Tighten

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