US Midwest refinery runs reach highest level since December 2023, EIA reports

US Midwest refinery runs rose last week to their highest level since December 2023, according to the Energy Information Administration. The increase was driven by higher crude oil inputs, which rose to their highest level since April 2023. Refinery utilization rates also rose to their highest level since May 2023. The increased refinery activity contributed to a decrease in US crude oil inventories.

U.S. Midwest refinery runs surged to their highest levels since December 2023, according to the latest data from the Energy Information Administration (EIA). The increase in refinery activity was driven by higher crude oil inputs, which reached their highest levels since April 2023. Refinery utilization rates also climbed to their highest since May 2023, reflecting the increased demand for refined products.

The surge in refinery activity contributed to a decrease in U.S. crude oil inventories. The EIA reported that crude oil inventories fell by 6.5% below the seasonal 5-year average as of August 1, 2025. This decrease in inventories is a significant indicator of the market's response to the increased refinery activity and higher crude oil inputs.

The increase in refinery activity in the Midwest is part of a broader trend in the U.S. energy sector. The EIA reported that U.S. refinery crude runs increased by 213,000 barrels per day in July 2025, pushing total throughput to 16.9 million barrels per day and utilization rates to 95.5%—the highest since 2023 [1]. This surge was driven by seasonal demand, inventory dynamics, and geopolitical shifts, creating a seismic shift in industrial and capital market dynamics.

The increased refinery activity is also having implications for other sectors of the energy market. For example, the Gulf Coast's 96.1% utilization rate is bolstered by access to low-cost crude and export infrastructure, benefiting midstream operators like Kinder Morgan (KMI) and Magellan Midstream Partners (MMP) [1]. Energy services firms, including Schlumberger (SLB) and Baker Hughes (BHGE), are also seeing demand for retrofitting and low-carbon upgrades as refiners adapt to regulatory pressures.

Investors should be aware of the potential impacts of the increased refinery activity on the broader energy sector. The EIA's data underscores the need for strategic positioning in a shifting energy landscape. Those who align portfolios with high-utilization regions, hedge against fuel price swings, and diversify into energy transition plays will be best positioned to navigate the evolving arithmetic of energy and manufacturing.

References:

[1] https://www.ainvest.com/news/eia-refinery-crude-runs-surge-213-000-bbl-day-navigating-sector-rotation-energy-transition-2508/