IIR Energy - U.S Crude Oil Runs Improve Despite Unplanned Refinery Shutdowns
U.S. crude oil runs moved 268,000 barrels per day higher on the week to exceed the previous 2016 high, which was set in mid-July. Crude runs improved in all regions except for PADD 1, which saw a small decline.
The Gulf Coast was the main driver of this week’s increase in crude throughput. PADD 3 shrugged off the planned work at Baton Rouge and unplanned shutdowns at Citgo’s Lake Charles, Louisiana, refinery, Motiva’s Convent, Louisiana refinery and Chevron’s Pascagoula, Mississippi, refinery to move 101,000 barrels per day higher on the week. Next week will reflect the bigger surprise of Baton Rouge being completely shut down due to area flooding. IIR Energy will closely follow the flood closely to provide the best possible information on refinery shutdowns and outages.
PADD 5 also produced much higher runs on the week, coming in with an increase of 84,000 barrels per day. The likely reason for the increase was the restart at Par Petroleum’s Hawaii refinery after five weeks of planned work. After a lackluster late spring/early summer season, runs out on the West Coast have moved well into the five-year range and have now exceeded the five-year average.
The brief shutdown of a CDU at Marathon’s Robinson, Illinois, refinery accurately showed up in the Department of Energy stats as only a one-week incident. Crude runs fell 171,000 barrels per day at this time last week and have since rebounded 71,000 barrels per day. Unplanned refinery maintenance turnaround work at CVR Refining’s Coffeyville, Kansas refinery prevented runs from moving even higher following the full restart at Robinson.
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