Production slows at U.S. refineries

Reuters

Refiners in the United States have slowed fuel production to the lowest rate since they were battered by hurricanes in 2005 even as pump prices hit all-time highs, according to government data released yesterday. Experts said the drop-off in domestic output was due to thin profit margins in the refining industry amid high costs for crude, and could lead to an increase in gasoline prices to over $4 (U.S.) a gallon this summer driving season. U.S. retail gasoline prices hit a record $3.26 a gallon last week, while diesel struck a record $4.06 a gallon, according to the Lundberg Survey of about 7,000 gas stations released on Sunday. Refinery utilization rates fell last week by 1.6 percentage points to 82.2 per cent of capacity, the lowest since Oct. 21, 2005.