U.S. refineries are running at record-high levels as refiners enjoy strong margins and demand for gasoline rises across the globe. U.S. refinery utilization has remained above 90% since early April, driven primarily by Gulf Coast and Midwest refineries. Refineries in other parts of the country have largely stayed above 90% in recent weeks — even on the West Coast, where ExxonMobil’s Torrance, California, refinery remains in an extended outage due to a February explosion. Gross inputs to refineries exceeded 17 million barrels per day in each of the past four weeks, a trend driven by both the high utilization rates and increased refining capacity.
Gasoline crack spreads reached a high of 66 cents per gallon on July 8 — a level not seen since before the oil price plunge of 2008. Distillate gasoline crack spreads have been lower than gasoline crack spreads since May, reversing a four-year trend.
Meanwhile, U.S. motor gasoline product supplied increased nearly 3% in the first five months of 2015 and petroleum product supplied is up 2.5%. Reports indicate gasoline demand has increased this year in other world markets such as Europe and India. Net exports have increased 19% through May.
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