Net refinery inputs decreased by 280 Mb/d, and gross input fell by 220 Mb/d to 16.54 MMb/d, marking the first significant decline since the week ending October 4, when maintenance activities were at their peak. This year, the maintenance season concluded earlier, with volumes about 600 Mb/d higher than the same week last year.
The fall maintenance period is crucial not only for traditional plant upkeep but also due to the significant influence of the Winter Reid Vapor Pressure (RVP) requirement on refinery operations, especially in regions where winter gasoline formulations are mandated. This seasonal shift involves transitioning from summer gasoline, which has a lower RVP to reduce emissions, to winter gasoline with a higher RVP for easier vaporization in cold weather. Refineries adjust their gasoline blends by increasing butane and other additives to raise the RVP, impacting the supply and demand for these components. During this time, refineries also schedule maintenance to accommodate these formulation changes and fine-tune their product mix to meet the increased demand for winter-grade gasoline, which can affect market supply and costs.
