U.S. Refineries Forecast to Run at 'Relatively High' Rates this Summer

June 13, 2022--Researched by Industrial Info Resources (Sugar Land, Texas)--Propelled by strong margins, U.S. refineries are expected to run at "relatively high" utilization rates this summer, according to the U.S. Energy Information Administration's (EIA) June Short-Term Energy Outlook.

Wholesale prices for petroleum like diesel and gasoline, which have increased more than the price of the crude oil used to make them, will drive the higher rates, according to the EIA. Historically high crack spreads for both diesel and gasoline increased in the first several months of 2022, it noted.

"In response to these high prices, we expect that refinery utilization will reach a monthly average level of 96% twice this summer, near the upper limits of what refiners can consistently maintain," according to the EIA's Friday "Today in Energy report. "We expect refinery utilization to average 96% in June, 94% in July, and 96% in August."

Companies featured: Phillips 66 Company (NYSE:PSX), Marathon Petroleum Corporation (NYSE:MPC), Exxon Mobil Corporation's (NYSE:XOM)