US refineries operate at highest capacity in 28 years amid heavy oil glut

EIA: The Energy Information Administration is the statistical and analytical agency within the US Department of Energy responsible for collecting, analyzing, and disseminating energy information. It reported record-high US refinery utilization rates. This data underpins the news account of refineries running at levels not seen in nearly three decades. TP ICAP: TP ICAP is a global brokerage firm active in energy and commodity markets, providing trading services and market insights. Its energy specialist commented on the central role of freight costs in the current oil market dynamics. The firm’s perspective helps explain the export constraints affecting heavy crude from the Americas. Liz Hampton: Liz Hampton is a Reuters editor handling energy stories. She edited the article on the Americas heavy oil surplus and international buying scramble. Her role ensures factual accuracy and clarity in the market analysis. Nathan Crooks: Nathan Crooks is a Reuters editor focused on energy and Latin American coverage. He participated in editing the piece on Venezuelan and other heavy crude exports. His oversight supports balanced reporting on geopolitical and market factors. Scott Shelton: Scott Shelton serves as an energy specialist at TP ICAP, focusing on oil and related markets. He was quoted attributing the heavy crude glut primarily to elevated freight rates rather than production issues. His remarks provide key trader-level context for the split between Americas oversupply and shortages elsewhere. US refineries: US refineries are industrial facilities that convert crude oil into refined products such as diesel and gasoline, with many equipped to handle heavier grades. They have been operating near maximum capacity to meet strong fuel demand. This situation directly contributes to the buildup of heavy crude in the Americas as they cannot process additional volumes beyond current limits. David Gregorio: David Gregorio is a Reuters editor with experience in commodities and international news. He contributed to editing the dispatch on freight-driven oil market distortions. His input helps maintain the story’s global context. Amanda Stephenson: Amanda Stephenson is a Reuters journalist reporting from Calgary on Canadian energy issues. She helped cover developments involving Canadian heavy crude grades. Her input adds regional perspective on production and pricing in North America. Arathy Somasekhar: Arathy Somasekhar is a Reuters journalist covering energy and commodities. She contributed to the reporting on freight costs and heavy crude price movements in the Americas. Her involvement ensures detailed coverage of global oil flows. Georgina McCartney: Georgina McCartney is a Reuters journalist based in Houston covering energy markets. She co-reported the article detailing the heavy oil glut and regional supply shifts. Her work delivers on-the-ground reporting from a key oil trading hub. Georgios Sakellariou: Georgios Sakellariou is an analyst at Signal Maritime specializing in shipping economics. He provided estimates on supertanker charter costs from the US Gulf Coast to Europe and Asia. These figures illustrate the freight squeeze central to the reported market imbalance. Freight Squeeze: Elevated supertanker rates have made long-haul exports of heavy crude from the Americas uneconomical, leading to storage builds in the region. Refinery Constraints: US refineries are operating at peak levels but cannot absorb all available heavy crude, exacerbating the domestic glut. Regional Supply Split: Asia and Europe face shortages of heavy grades while North and South America experience oversupply due to limited shipping options.