Washington DC [US], July 16 (ANI): Disruptions to international crude oil and petroleum product flows through the Strait of Hormuz during the second quarter of 2026 boosted U.S. refinery margins, production and petroleum exports, according to the U.S. Energy Information Administration (EIA).

The EIA said petroleum markets in the second quarter of 2026 were marked by continued disruptions to international crude oil and petroleum product flows through the Strait of Hormuz, which contributed to higher and more volatile crude oil prices through most of the quarter.

'The disruptions also resulted in international buyers seeking alternative supply sources for petroleum products, driving up U.S. refinery margins, production, and exports,' the EIA said.

According to the report, U.S. refineries operated at unseasonally high levels during the quarter, processing the highest volume of crude oil for a second quarter since 2019, despite refining capacity being 4 per cent higher in 2019.

The report said higher refinery activity reflected strong margins for transportation fuels. Motor gasoline, distillate and jet fuel crack spreads all remained elevated during the quarter.

The average gasoline crack spread was 60 per cent higher than a year ago, while distillate and jet fuel crack spreads were more than double their levels from the same period last year due to tight international supply.

The disruption in supplies through the Strait of Hormuz also tightened global refined product markets, leading to record U.S. exports of distillate and jet fuel during the quarter.

The EIA estimated that second-quarter distillate exports averaged 1.56 million barrels per day, which was 30 per cent higher than the five-year average. Jet fuel exports averaged 356,000 barrels per day, more than double the five-year average.

According to the report, U.S. distillate shipments increased to all major export markets compared with the first quarter of 2026. Jet fuel exports rose significantly to Europe, while exports to most other destinations remained broadly unchanged.

The report said stronger international demand to replace lost jet fuel supplies prompted refiners to adjust refinery operations and maximise jet fuel production for exports.

'In the United States, refineries typically optimize production for motor gasoline to meet domestic demand. In 2Q26, we estimate jet fuel production was 24 per cent higher than the five-year average because of higher refinery runs and higher jet fuel yields. Distillate production was 5 per cent higher and motor gasoline production was only 1 per cent higher over the same period,' the report said.

The EIA noted that refiners were able to alter product yields by changing refinery processes and the types of crude oil they processed, allowing them to respond to changing market conditions and stronger international demand for refined petroleum products. (ANI)