U.S. Refiners Operating at Full Capacity as Global Fuel Supply Tightens and Strategic Petroleum Reserve Dwindles

U.S. fuel refiners are reportedly operating at maximum capacity to address global fuel supply shortages, which are exacerbated by geopolitical conflicts and disruptions. Concurrently, the U.S. Strategic Petroleum Reserve (SPR) has fallen to its lowest level since 1983 due to successive drawdowns from oil price shocks. This combination of full refinery utilization and a depleted SPR significantly reduces the traditional shock absorbers for fuel-intensive operations, necessitating that procurement teams stress-test fuel cost scenarios against a market with limited relief options.