WASHINGTON, July 16 (ANI): Disruptions to international crude oil and petroleum product flows through the Strait of Hormuz during the second quarter of 2026 boosted U.S. refinery margins, production, and petroleum exports, according to the U.S. Energy Information Administration (EIA).
The EIA said petroleum markets during the second quarter were marked by continued disruptions to crude oil and refined product flows through the Strait of Hormuz, contributing to higher and more volatile crude oil prices for much of the period.
“The disruptions also resulted in international buyers seeking alternative supply sources for petroleum products, driving up U.S. refinery margins, production, and exports,” the EIA said.
According to the report, U.S. refineries operated at unseasonably high levels during the quarter, processing the highest volume of crude oil for a second quarter since 2019, despite refining capacity being 4% higher in 2019.
The report said the increase in refinery activity reflected strong profit margins for transportation fuels. Motor gasoline, distillate, and jet fuel crack spreads all remained elevated during the quarter.
The average gasoline crack spread was 60% higher than a year earlier, while distillate and jet fuel crack spreads were more than double their levels from the same period last year because of tight global supply.
Disruptions to shipments through the Strait of Hormuz also tightened global refined product markets, leading to record U.S. exports of distillate and jet fuel during the quarter.
The EIA estimated that second-quarter distillate exports averaged 1.56 million barrels per day, 30% above the five-year average. Jet fuel exports averaged 356,000 barrels per day, more than double the five-year average.
According to the report, U.S. distillate shipments increased to all major export markets compared with the first quarter of 2026. Jet fuel exports rose sharply to Europe, while exports to most other destinations remained broadly unchanged.
The report said stronger international demand to replace disrupted jet fuel supplies prompted refiners to adjust operations and maximize jet fuel production for export.
“In the United States, refineries typically optimize production for motor gasoline to meet domestic demand. In 2Q26, we estimate jet fuel production was 24% higher than the five-year average because of higher refinery runs and higher jet fuel yields. Distillate production was 5% higher, and motor gasoline production was only 1% higher over the same period,” the report said.
The EIA noted that refiners were able to adjust product yields by modifying refinery processes and the types of crude oil they processed, allowing them to respond to changing market conditions and stronger international demand for refined petroleum products. (ANI)
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