The four-week average of U.S. gross refinery inputs surpassed 18 million barrels per day (b/d) for the first time on record for the week ending July 6, the U.S. Energy Information Administration (EIA) announced earlier this week.
'U.S. refineries are running at record levels in response to robust domestic and international demand for motor gasoline and distillate fuel oil,' the EIA said.
Before the most recent increases in refinery runs, the last time the four-week average of U.S. gross refinery inputs approached 18 million b/d was the week of Aug. 25, 2017, the agency added.
'Hurricane Harvey made landfall the following week, resulting in widespread refinery closures and shutdowns along the U.S. Gulf Coast,' it said.
According to the EIA, the increase in refinery runs has been driven by a boost in refinery capacity, rather than higher utilization, with the capacity having increased by 862,000 barrels per calendar day (b/cd) between Jan. 1, 2011, and Jan. 1, 2018.
The four-week average of finished motor gasoline product supplied for the week ending Aug. 3 stood at 9.7 million barrels per day (b/d), hitting 'the highest level of the year in August,' the EIA noted.
'Weekly data for this summer to date suggest that this year's peak in finished motor gasoline product supplied is likely to match that of 2016 and 2017, the two highest years on record, at 9.8 million b/d,' it added.
U.S. distillate consumption, again measured as product supplied, is also 'relatively high', according to the agency, having averaged 4 million b/d for the past four weeks, 64,000 b/d lower than the five-year average level for this time of year.
On the other hand, U.S. exports of distillate continued to increase reaching a four-week average of 1.2 million b/d as of Aug. 3.
In its August Short-Term Energy Outlook, the EIA forecasts that U.S. refinery runs will average 16.9 million b/d and 17.0 million b/d in 2018 and 2019, respectively.
If achieved, both would be new record highs, surpassing the 2017 annual average of 16.6 million b/d, according to the agency.
By Hale Turkes
Anadolu Agency
energy@aa.com.tr