US oil companies are intensifying efforts to increase fuel production and maximize refinery operating capacity, amid declining global supplies caused by the repercussions of the war in the Middle East and the Russian-Ukrainian war.
Agence France-Presse quoted Exxon Mobil CEO Darren Woods in a statement on Friday evening, saying the company's refineries on the US Gulf coast are operating at full capacity, recording record levels in refining unit operations outside the Middle East. Meanwhile, Chevron announced it achieved a record level of crude oil processed by its refineries during the third quarter.
Decline in Russian production
Woods noted that a return of supplies to levels closer to normal could take more than a year. Meanwhile, Chevron board vice chairman Mark Nelson pointed out that about 10 percent of global refining capacity remains out of service.
According to the agency, sector disruptions were exacerbated by Iran closing the Strait of Hormuz to shipping traffic and targeting oil facilities in the Russian-Ukrainian war. The agency indicated that Russian refinery production dropped to 3.8 million barrels per day, compared to a normal rate of 6.5 million barrels.
Rise in profits and prices
According to the agency, sector disruptions were exacerbated by Iran closing the Strait of Hormuz to shipping traffic and targeting oil facilities in the Russian-Ukrainian war. The agency indicated that Russian refinery production dropped to 3.8 million barrels per day, compared to a normal rate of 6.5 million barrels.
In contrast, Exxon Mobil and Chevron announced their quarterly profits more than doubled, benefiting from rising commodity prices and improved refining profit margins, despite continued pressures on fuel markets and global supplies.
These moves come as US gasoline prices surpassed four dollars per gallon, and diesel prices approached six dollars, amid shortages in refined oil product supplies resulting from damaged production facilities in the Middle East and Russia, and a decline in China's production of oil derivatives.
Source: Syrian Arab News Agency (SANA)
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