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The world’s main oil refining hub is firing on all cylinders as exports boom – BNN Bloomberg
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The world’s main oil refining hub is firing on all cylinders as exports boom – BNN Bloomberg

(Bloomberg) — U.S. Gulf Coast refineries are working their hardest at this time of year in more than three decades, as they rush to take advantage of strong fuel demand from Mexico and Brazil.

Fuel makers in the world’s largest refining hub processed 9.31 million barrels of crude per day last week, the highest figure for this time of year in data going back to 1992, according to the Energy Information Administration. The United States is on track to ship 2.96 million barrels of products, including diesel and gasoline, per day this month, the highest figure in more than seven years, according to the company Kpler maritime intelligence service.

American refineries are taking advantage of Mexico’s difficulties to accelerate the ramp-up of its new Olmeca refinery before the peak road season in December, when Mexicans hit the road after receiving their Christmas bonuses. In Brazil, demand for diesel – a key indicator of economic activity in a country where most goods are transported by truck – hit a 24-year high this year as America’s largest economy Latin America is experiencing 12 consecutive quarters of economic expansion.

Strong export demand and low inventories have pushed the gasoline and diesel manufacturing profit margin, known as the 3-2-1 crack spread, to its highest level since August.

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