Washburne says Russian refineries are operating at 40% capacity
In Dallas, United States, Ray Washburne, head of fuel distributor Sunoco, stated that oil refineries of the Russian Federation — an aggressor state — are operating at 40% capacity. According to him, Russia is not exporting because Ukrainians are striking its oil refining infrastructure.
Expectations for the oil market
In an interview with CBS News World, Washburne said that a significant volume of supply could return to the market after Russian refineries resume operations and the situation around Iran is settled.
Washburne noted that forward oil prices around a year from now are significantly lower than the current level of about $90 per barrel. In his assessment, traders expect supply problems to be resolved within several months, which could contribute to lower prices.
He also noted that refiners risk incurring losses if oil prices fall, as they purchase crude at current prices.
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Scott Bessent previously suggested that after the war with Iran ends, the price of oil could potentially decline to $40–50 per barrel. He explained this by the significant volumes of supply that, according to him, are currently constrained.
Gasoline demand in the United States
According to Washburne, gasoline demand in the United States has remained stable after its summer peak and has not shown a significant decline despite higher prices. He said that refineries are operating at 98% and that Sunoco expects to sell about 17 billion gallons this year.
Washburne added that retail margins at gas stations are determined by the station operators themselves. He also said that about 20,000 participants from all 50 U.S. states and territories are expected at the Republican midterm convention in Dallas.
