US coaxing refiners to produce more diesel, energy department officials say
USO•US energy department officials said they are working with refiners at home and abroad to boost diesel output as a shortage raises concerns about prices and inflation. US refiners are running at 95% to 100% of capacity, while the International Energy Agency plans to release more than 20 million barrels of diesel as soon as possible.
1. Efforts to raise output
Energy Secretary Chris Wright said the administration is talking about reopening every refinery it can, while cautioning that not all efforts would succeed. He said the US is also working with India to increase refining output there and bring products to global markets.
2. US capacity constraints
American Petroleum Institute CEO Mike Sommers said US refiners are running at 95% to 100% of capacity and putting off planned maintenance because of high prices. He said restarting idled plants under the Defense Production Act would require substantial capital. Vice President JD Vance said last week the administration would use the act to expand capacity at a Texas refinery owned by Delek US Holdings.
3. International supplies
The administration has pushed Europe to release 50 million barrels of diesel, while the IEA said it would speed the release of pledged volumes, including more than 20 million barrels of diesel as soon as possible. IEA chief Fatih Birol said the group is ready to coordinate further oil releases by member countries if needed.
