US Refineries See Seasonal Highs Ahead of Holiday Travel
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U.S. Gulf Coast refineries are operating at their highest capacity for this time of year since 1992 as they capitalize on strong fuel demand from Mexico and Brazil.
The world’s largest refining hub processed 9.31 million barrels of crude a day last week, according to the Energy Information Administration. The U.S. is on track to export 2.96 million barrels of products including diesel and gasoline a day this month, the highest level in more than seven years, maritime intelligence firm Kpler reported.
U.S. refineries are benefiting from Mexico’s challenges in ramping up its new Olmeca refinery before the peak December driving season, when Mexicans traditionally travel after receiving Christmas bonuses. In Brazil, diesel demand — a key indicator of economic activity in the truck-dependent nation — reached a 24-year high this year as Latin America’s largest economy marked its 12th consecutive quarter of growth.
Strong export demand and low inventories have pushed the 3-2-1 crack spread, the profit margin from producing gasoline and diesel, to its highest level since August.
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