US Crude Oil Refiners to Boost Fuel Output Beyond 90% Capacity for Summer
By Jace Dela Cruz
Jun 01, 2024 07:01 AM EDT
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Jun 01, 2024 07:01 AM EDT
US crude oil refiners are reportedly preparing to increase their operations above 90% capacity following the completion of planned maintenance as summer driving season starts.
According to Reuters, the motorist group AAA reported that strong spring production has kept retail gasoline prices comparable to last year. On Friday, the national average for a gallon of regular gasoline was $3.559, almost matching the $3.576 of last year.
According to the US Energy Information Administration (EIA), US refineries operated at an average of 86% of their total capacity of 18.1 million barrels per day during the first two months of the year.
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Matthew Blair, a downstream research director at Tudor, Pickering, Holt & Co., told Reuters that 90% could be a reasonable estimate for refinery capacity utilization in the second quarter of 2024.
Blair noted that refineries increased production in May after finishing maintenance in April. EIA said the 90% target slightly falls short of the industry's 93% capacity recorded in the second quarter of 2023.
Top refiner Marathon Petroleum Corp. aims to operate its refineries at 94% capacity in the second quarter, an increase from 82% during the first quarter's maintenance. Similarly, Valero Energy Corp. plans to operate its refineries as high as 95% of its combined total production capacity.
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