LONDON: U.S. refineries have operated near maximum capacity for the longest sustained period in over a quarter century,scrambling to capture windfall profits created by the Iran war. But history offers a cautionary tale: "Super refining" runs that push plants too hard can cause major failures. This has global implications.
U.S. refineries' ability to sustain today's elevated operating rates for months, or potentially years, could mean the difference between an exceptionally tight global fuel market and a full-blown supply crisis marked by acute shortages, demand destruction and widespread economic pain. A U.S.-Israeli air campaign against Iran in late February triggered the closure of the Strait of Hormuz, disrupting a fifth of global oil supply and severely hampering refining operations, particularly in Asia. Meanwhile, relentless Ukrainian attacks on Russian refineries caused Moscow to suspend diesel exports in July.
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