India US refiners profit from fuel supply disruptions

Wars in Iran and Ukraine have disrupted global fuel supplies, driving up prices and leaving importers scrambling for barrels during the peak summer driving season. Indian and U.S. refiners, unaffected by attacks or shipping blockades, have ramped up exports to nations that previously relied on Middle Eastern and Russian supplies. India is emerging as Asia's swing supplier, with high utilization at export-focused refineries like Reliance and Nayara. U.S. refiners exported distillate fuels at a record 1.9 million barrels per day in the week ended August 7, with jet fuel exports near record levels. Global refining throughput fell to about 89 million barrels per day in July, down 5 million from last year, while demand remains above 100 million bpd. Indonesia's fuel demand remains resilient, and Brazil increased U.S. diesel imports after Russia extended its fuel export ban. China has relaxed export limits, posing potential competition. U.S. refiners face pressure from President Donald Trump to lower domestic gasoline prices, balancing export margins with domestic supply. Diesel margins hit a record high of over $102 per barrel, and gasoline inventories are below seasonal averages. Analysts expect Indian and U.S. refiners to continue benefiting as long as supply disruptions persist.