Permanently reduced U.S. refining capacity since 2019 has eliminated slack in the system, amplifying profit margins during any supply disruption

"U.S. refiners have stepped into the gap, running at or near record utilization rates and exporting more fuel into a market increasingly short of diesel, gasoline and jet fuel. On Monday, the U.S. diesel crack spread hit an all-time high of $102.20 per barrel."

"The U.S. has permanently shut a large slice of its refining capacity over the past several years, leaving far less room to absorb any disruption. Sigel noted that the country has retired between 1.2 and 1.3 million barrels a day of refining capacity since 2019, the equivalent of closing seven major plants."