U.S. refiners are operating at nearly 95% of capacity as strong domestic and international demand pushes up fuel production. Disruptions to global energy flows, including reduced shipments through the Strait of Hormuz, have increased demand for U.S. gasoline, diesel, and jet fuel.
The high utilization rate is also leading some refiners to delay routine maintenance, which could increase the risk of unexpected breakdowns, according to the Institute for Energy Research (IER). Meanwhile, the U.S. has lost significant refining capacity since 2020, while California has recently closed two refineries, increasing its dependence on imported fuel.
With fuel demand remaining strong and global supplies tight, reduced refining capacity and dependence on heavy crude imports are putting additional pressure on the U.S. refining system. These conditions could push fuel prices higher and raise concerns about supply reliability.
