US refinery utilisation to average above 90% in 2023 and 2024 – EIA
US refinery utilisation is forecast to average about 91% this year and 90% in 2024, according to the US Energy Information Administration (EIA).
PHOTO: Oil refinery complex with a big American flag displayed. Getty Images
US refinery utilisation has gradually recovered from record low levels in 2020-2021.
Refinery utilisation slumped below 79% in 2020, as rising Covid-19 infections and lockdowns in the country reduced economic activity and pulled down gasoline demand.
The EIA predicts gasoline and diesel prices to be slightly lower this year compared to 2022, but expects prices to remain higher than pre-pandemic levels.
Many US refineries are expected to undergo scheduled maintenances from April onwards, which should support gasoline and diesel prices. Low stock levels along with high summer demand will likely encourage refineries to maximise utilisation when they return from maintenances this summer.
US fuel demand generally grows during the peak summer driving season. Refineries tend to maximise utilisation to cater to higher expected demand. However, slower economic growth will likely reduce domestic diesel and gasoline consumption this year, the EIA says.
A combination of higher refinery utilisation and lower demand is expected to lead to surplus supply of diesel and gasoline, thereby adding downward price pressure.
By Nithin Chandran
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