Authored by Tsvetana Paraskova via OilPrice.com,

As petroleum stocks dwindle and demand soars, refining margins are skyrocketing.

U.S. refiners have been operating at full tilt in recent weeks to keep up with demand.

There is a growing concern that refiners may not have much room to safely increase capacity.

U.S. refineries have been operating at or near maximum utilization levels in recent weeks as demand recovers. Petroleum stocks are sitting at multi-year lows, and refining margins are sky-high.   Refinery utilization at 95% is at its highest since before COVID—September 2019. Yet, refiners don't have much room to safely raise capacity usage further, while the summer season with heat waves and hurricanes could suddenly take some capacity off the market, further straining gasoline supply and putting upward pressure on gasoline prices.