President Joe Biden on Wednesday called on U.S. oil refining companies to produce more, saying they need to help alleviate the burden of high prices on consumers.
“At a time of war – historically high refinery profit margins being passed directly onto American families are not acceptable,” the president said in a letter to oil companies including Exxon Mobil and Chevron.
″[C]ompanies must take immediate actions to increase the supply of gasoline, diesel, and other refined product,” the letter added.
Refiners can’t just ramp up output, and utilization rates are already above 90%. Additionally, some refiners are now being reconfigured to make alternate products like biofuel.Still, there is no easy solution. John Kilduff, partner at Again Capital, said refiners are working at historically high level. “There is nothing left to ramp up,” he said.
R&I – FS
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