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U.S. refinery utilization near-capacity as fuel stocks tighten
Refinery capacity averaged 96.2% as of July 17, while commercial oil stocks are about 6% below the five-year norm and U.S. wholesale diesel futures are up 26% in July.
U.S. refinery utilization has been running near capacity as fuel markets tighten amid disruptions linked to the Iran war and the closure of the Strait of Hormuz, OilPrice reported. Data from the U.S. Energy Information Administration put the nationwide average refinery capacity utilization at 96.2% as of July 17, up from 94.7% in the same week of 2025.
OilPrice said regional pressure is even higher, with the Midwest and Rocky Mountains regions, PADD2 and PADD4 respectively, at 100% utilization as of last week. The outlet also noted that U.S. commercial oil stocks remain 6% below the five-year average for this time of year, despite a build in the past week.
The report added that stocks at Cushing, Oklahoma, and in the Strategic Petroleum Reserve are at multi-year and multi-decade lows. With refiners operating at effectively full capacity, the U.S. fuel market is described as more exposed to sudden supply shocks like hurricanes or unplanned refinery stoppages.
OilPrice also pointed to tightening market pricing, citing that U.S. wholesale diesel futures have risen 26% so far in July, according to data compiled by the Financial Times. It further said refining margins for gasoline and diesel have hit new record highs after renewed Middle East tensions, Russia’s diesel export ban, and declining global fuel inventories.
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