Written by: Fatma Younis
The refining sector in the United States witnessed unprecedented operating levels during 2026, supported by the global shortage of refined fuel supplies, particularly diesel, which led to strong profit margins for companies operating in this vital sector that connects crude production to final consumer markets.
Historical operating rates for refineries
Official data showed that refinery capacity utilization rates exceeded an average of 95 percent during the period from May to September, marking the highest operating level for those months since 1998. The refinery utilization rate is a key indicator of the volume of available operational capacity employed to process crude oil and various production inputs.
Factors for production growth and operational constraints
Although high operating levels contribute directly to meeting strong demand for fuel products, production remains governed by several constraints related to total available refining capacities and the periodic maintenance requirements of facilities. The increasing demand for US diesel exports, amid a sharp shortage in global supplies, has pushed companies to increase the pace of production.
Price challenges and market pressures
Diesel prices recorded unusual levels as a result of the global shortage associated with geopolitical tensions and the effects of attacks on regional and international refining facilities. In light of this, the US administration has urged companies and refineries to increase diesel production volume to contain price spikes. It is noteworthy that the historical average for refinery operating rates between May and September is about 92 percent, compared to about 88 percent during the rest of the year.
