So far this year, U.S. refineries have cut crude oil processing by nearly 100 million barrels, mainly to cope with weak domestic and foreign demand, according to hydrocarbon processing network on November 22.
So far this year, crude oil processing has declined for the first time since the 2008 / 09 recession, according to the EIA.
So far, the crude oil processing capacity of U.S. refineries in 2019 is 16.61 million barrels / day, down from 16.91 million barrels in the same period in 2018.
The decline in crude oil processing is partly due to the closure of a 335000 barrels per day refinery in Philadelphia, on the east coast of the United States, following an explosion and fire on June 21.
This year, crude oil processing on the east coast of the United States dropped 138000 barrels (13%), and crude oil processing in the Gulf of Mexico and the West Coast dropped 147000 barrels (1.6%) and 54000 barrels (2.2%) respectively.
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Compared with 2018, the processing volume nationwide in the United States decreased by 1.8%, with refineries on the east coast accounting for less than half of the total decline.
Refiners have cut crude oil production in response to falling demand for oil products to avoid overstocked excess inventory and lower margins.
In the eight months from January to August, U.S. refined oil consumption fell 1.0%, with gasoline down 0.5% and distillates down 1.2%.
From January to August this year, the total consumption of refined oil including imports fell 44 million barrels compared with the same period last year, the first decline since 2012.
| EDTA |
In the first eight months of this year, U.S. refined oil exports also fell 30 million barrels, the biggest decline in more than two decades, reflecting weak demand for gasoline, residual fuel oil and petroleum coke abroad.
By limiting crude oil processing, U.S. refineries avoided gasoline and diesel surpluses, but created greater surpluses in the crude oil market, thereby supporting refining profits.
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