BAKU, Azerbaijan, February 12. The planned shutdown of two U.S. refineries is expected to reduce the country’s crude oil refining capacity in both 2025 and 2026, leading to lower production of refined petroleum products, according to the U.S. Energy Information Administration (EIA), Trend reports.
EIA forecasts U.S. refinery output to decline by 190,000 barrels per day (b/d) in 2025 and by 180,000 b/d in 2026 as a result of the closures. LyondellBasell has already begun shutting down its 263,776-b/d Houston refinery as of January 27, 2025, with full closure expected in early February. Additionally, Phillips 66 is set to close its 138,700-b/d Los Angeles refinery by the end of 2025.
To compensate for reduced domestic refining capacity while meeting rising demand for petroleum products, refinery utilization in the U.S. is expected to remain high. However, net exports of petroleum products are projected to decline as more refined fuel is directed toward the domestic market. The EIA also anticipates a drop in U.S. inventories of gasoline, distillate fuel, and jet fuel due to these market shifts.