--- title: "Years of capacity contraction + geopolitical conflicts lead to a global fuel supply crisis! American refiners enjoy billions of dollars in profits" type: "News" locale: "en" url: "https://longbridge.com/en/news/294433949.md" description: "Affected by the long-term shutdown of U.S. refineries and geopolitical conflicts in the Middle East, global fuel supply is tightening. Against this backdrop, major U.S. refiners such as Valero Energy and PBF Energy reported record high profits in the second quarter, with Valero's net profit increasing more than fivefold year-on-year to $3.7 billion. Although production typically slows in the fall, refiners expect high profit margins to continue due to slow inventory recovery and tight market supply" datetime: "2026-07-31T00:44:43.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/294433949.md) - [en](https://longbridge.com/en/news/294433949.md) - [zh-HK](https://longbridge.com/zh-HK/news/294433949.md) --- # Years of capacity contraction + geopolitical conflicts lead to a global fuel supply crisis! American refiners enjoy billions of dollars in profits According to the Zhitong Finance APP, **against the backdrop of refinery closures in the United States over the years and the tightening of global fuel supplies due to wars in the Middle East, American refiners are operating at full capacity to meet market demand, making the second quarter one of the most profitable in history.** Valero Energy (VLO.US) reported on Thursday that it achieved the strongest quarterly performance in history in terms of earnings per share. PBF Energy (PBF.US) and HF Sinclair (DINO.US) recorded their best profit performances since 2022 and 2023, respectively. Other refining giants, including Phillips 66 (PSX.US) and Marathon Oil (MPC.US), are also set to announce their earnings, with investors expecting these companies to deliver impressive results. The closure of refineries over the years has led to a lack of supply buffer in the fuel market. Now, the war between the United States and Iran has disrupted Middle Eastern fuel exports, while Ukraine's attacks on Russian refining facilities have also limited gasoline and diesel exports. These supply disruptions have collectively led to a decline in global fuel inventories and driven up global fuel prices. With demand remaining relatively stable, gasoline and diesel inventories show little sign of recovery, indicating that market supply will remain tight and prices will stay high. Although fuel production typically begins to slow down in the fall, American refiners have stated that they will continue to pursue profit margins close to historical records. Matthew C. Lucey, CEO of PBF Energy, stated during the earnings call, "The pace of product inventory recovery will be slow, and the eventual replenishment process that must occur will provide favorable support for refining margins in the coming quarters." Under the impact of war, American refiners earn billions in profits. Valero Energy's net profit in the second quarter increased more than fivefold year-on-year, rising from $714 million in the same period last year to $3.7 billion, setting a new record. HF Sinclair's net profit in the second quarter increased nearly fourfold to approximately $892 million. PBF Energy turned from a loss of $1 billion in the same period in 2025 to profitability, with net profit increasing by over $1 billion. Looking ahead to the next quarter, both Valero Energy and HF Sinclair expect only a slight decrease in their average daily crude oil processing volumes. PBF Energy, which processed nearly 890,000 barrels of crude oil per day in the second quarter, anticipates further increases in processing volumes, reaching up to 960,000 barrels per day next quarter. As fuel supply tightness continues, corporate profits may further improve. Gary Simmons, COO of Valero Energy, stated during a conference call with stock analysts, "So far, the margin environment is stronger than in the second quarter." He noted that lower crude oil costs are driving profit improvements Simmons also stated that there are currently almost no signs that fuel prices will decline in the short term. He pointed out that jet fuel prices, which had retreated from historical highs this summer, seem to be rising again. Due to increased U.S. export demand caused by disrupted Russian supplies, diesel prices remain high. As buyers begin to stock up in advance for the winter heating season, diesel prices may continue to be supported even at higher costs. Meanwhile, Simmons noted that importing gasoline from Europe to the U.S. is not economically viable, as gasoline prices in the European market are also high. However, exporting gasoline to Latin America is economically attractive due to arbitrage opportunities between markets. He added that this has also led to U.S. gasoline prices remaining elevated ### Related Stocks - [PBF.US](https://longbridge.com/en/quote/PBF.US.md) - [VLO.US](https://longbridge.com/en/quote/VLO.US.md) - [BNO.US](https://longbridge.com/en/quote/BNO.US.md) - [USO.US](https://longbridge.com/en/quote/USO.US.md) - [UCO.US](https://longbridge.com/en/quote/UCO.US.md) - [DINO.US](https://longbridge.com/en/quote/DINO.US.md) - [PSX.US](https://longbridge.com/en/quote/PSX.US.md) - [MPC.US](https://longbridge.com/en/quote/MPC.US.md) ## Related News & Research - [PBF Energy Q2 revenue beats analyst estimates](https://longbridge.com/en/news/294347570.md) - [Valero Energy Corporation $VLO Shares Acquired by Centaurus Financial Inc.](https://longbridge.com/en/news/294577111.md) - [Trump Is Playing Chicken With the Country That Fuels Half of America — During a Global Energy Crisis](https://longbridge.com/en/news/293912348.md) - [Is Valero Energy (VLO) Undervalued Or Are Earnings Sending A Warning?](https://longbridge.com/en/news/294295026.md) - [US refiner Valero says tax credit overhaul, registration hurdles have slowed biofuel imports](https://longbridge.com/en/news/294402643.md)