US Oil Refiners Boost Fuel Output Amid Iran War Supply Disruptions
US oil refiners are significantly increasing fuel production to address critical supply gaps in gasoline, diesel, and jet fuel caused by the ongoing war in Iran, which has severely disrupted energy supplies from the Persian Gulf. Analysts predict that refineries will operate at maximum capacity through the remainder of 2026 as global markets struggle with shrinking backup supplies and damaged Middle East infrastructure. Utilization rates in the US have risen to nearly 92%, with gasoline output reaching nine-month highs and jet-fuel production hitting levels unseen since mid-2024. The conflict has led to the closure of the Strait of Hormuz and attacks on onshore facilities, removing approximately 6% of global refined product capacity from the market. In response, US companies like Valero Energy and Marathon Petroleum are adjusting operations to maximize jet fuel output. Consequently, US fuel exports have surged to record levels to aid Europe, where stockpiles are critically low. Despite high prices, domestic demand remains robust, indicating that the current market tension is driven by insufficient supply rather than demand destruction.
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