U.S. Refiners Reap Record Profits as 3-2-1 Crack Spread Tops $60 a Barrel
Updated
Updated · OilPrice.com · Jul 13
U.S. Refiners Reap Record Profits as 3-2-1 Crack Spread Tops $60 a Barrel
3 articles · Updated · OilPrice.com · Jul 13
Summary
$60-plus per barrel crack spreads have pushed U.S. refining margins to a record, handing refiners an unexpected windfall even after the Strait of Hormuz reopened.
Brent has fallen back to about $70 a barrel because Gulf crude exports rebounded above 12 million bpd in June from under 8 million in May, flooding the market with stored barrels and restarted output.
Fuel prices have stayed elevated because gasoline and diesel inventories remain depleted after war-era disruptions; U.S. gasoline stocks entered summer at their lowest seasonal level in more than a decade, with gasoline cracks above $56.
Diesel is especially tight as Russian refining runs have dropped to 3.91 million bpd this month—down more than 1.4 million bpd from a year earlier—after repeated Ukrainian strikes on refineries and export infrastructure.
The gap between cheap crude and expensive fuels is likely temporary: stronger refinery runs should lift crude demand, but fuel relief depends heavily on Russian capacity and damaged Middle East refineries recovering.
As Ukrainian strikes halt Russian refineries, how long can this record-breaking profit bonanza for oil companies actually last?
Crude oil is cheap after the U.S.-Iran deal. Why are you still paying record prices for fuel?
2026 Energy Crisis: U.S. Refiners’ Record Margins, Consumer Pain, and the Global Supply Squeeze
Overview
As of July 2026, U.S. refiners are enjoying record profits by converting limited crude oil supplies into fuel with high margins, while consumers face persistently high fuel prices. This situation is driven by a tight global oil supply, worsened by the ongoing disappearance of Russian oil from the market and unpredictable exports from China. If the supply shortage continues, refiners are likely to maintain strong financial performance, but any rebuilding of oil stocks could quickly shift market dynamics and reduce their gains. The complex interplay of supply constraints and geopolitical risks keeps fuel prices elevated and market conditions uncertain.