U.S. oil refineries operated at an unusually high utilization rate, averaging over 95 percent of their capacity between May and September in 2026. This level of activity is the highest for these months since 1998. The increase in global demand for petroleum products, especially diesel, has led to higher profit margins for these products and encouraged increased operational rates.
Refinery Utilization and Production Rates
Since 1991, the average utilization rate of U.S. refineries from May to September has been 92 percent, while this figure drops to 88 percent in other months. Refineries typically operate more during this period to boost gasoline supply for the peak summer demand season. Conversely, diesel demand peaks in the fall and winter. Due to the combined production of gasoline and diesel at refineries, the high utilization rate in summer usually results in increased diesel inventories before seasonal storage and the peak diesel demand season.
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Driving Factors and Production Status
This year, the refinery utilization rate has peaked mainly due to a global diesel fuel supply shortage, leading to increased international demand for U.S. diesel fuel exports. Although the refinery utilization rate is the highest since 1998, total production from U.S. refineries has only reached the highest level since 2019, as refining capacity has decreased by 4 percent since then.
In the first three weeks of October, the refinery utilization rate has decreased from its summer peak but remains above the five-year seasonal average (2021-2025). Production includes crude oil, gasoline, heating oil, diesel, propane, and other liquids, including biodiesel and natural gas liquids.
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