U.S. oil refiners are expected to keep fuel production running near full tilt through the rest of the year as the war with Iran disrupts Persian Gulf energy supplies and tightens global markets for gasoline, diesel and jet fuel, Bloomberg writes.
Refinery utilization has climbed for three straight weeks to nearly 92%, while gasoline output recently hit a nine-month high and jet fuel production reached levels not seen since summer 2024.
Analysts say shrinking backup supplies in Europe and damaged Middle East infrastructure are creating strong incentives for U.S. refiners to increase output. Jet fuel is especially tight, with European stockpiles nearing critical lows and U.S. exports reaching a record 455,000 barrels per day.
Valero and Marathon are adjusting operations to produce more jet fuel where possible. Meanwhile, U.S. gasoline demand has risen to its highest seasonal level since 2021, even as stockpiles sit at their lowest for this time of year since 2014.
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