U.S. refineries respond to record-low demand by decreasing inputs to certain downstream units (8/19/2020)

Starting in mid-March 2020, transportation fuel demand in the United States decreased to record lows as a result of reduced economic activity and stay-at-home orders aimed at slowing the spread of the 2019 novel coronavirus disease (COVID-19). In response to low demand and decreased profitability, as measured by crack spreads, U.S. refiners decreased inputs of crude oil to atmospheric distillation units (ADUs) and decreased processing of fresh feed by downstream units in order to decrease output of certain products. Demand for gasoline and jet fuel fell faster than demand for diesel, and refiners decreased runs in units associated with gasoline production (such as catalytic crackers) more than they decreased runs in units focused on distillate production (such as catalytic hydrocrackers). ... More »