The EIA’s Weekly Petroleum Status Report (WPSR) for the week ended July 17 shows that U.S. refinery runs eased by 58 Mb/d to just over 17 MMb/d. As seen in this week's Crude Billboard, refinery utilization remained high at 96.1%, underscoring refiners' willingness to maximize throughput as refiners sought to capitalize on historically attractive economics. The benchmark 3-2-1 crack spread skyrocketed to a record $65.38/bbl last week (blue dashed oval in chart below), supported by diesel cracks soaring nearly 12% to $83.88/bbl and gasoline cracks rising 2%, both reaching their strongest levels since 2022 (see Crack Spreads Soar).
Distillate production responded accordingly, rising to a seasonal record 5.3 MMb/d as refiners prioritized middle distillate yields amid exceptionally strong diesel margins. Together, these trends indicate that record refining margins, led by diesel, continue to support near-maximum refinery utilization and provide a powerful source of demand for U.S. crude despite the modest week-over-week decline in refinery runs.
