US refinery utilization averaged more than 95% during May–September 2026, the highest for those months since 1998, as tight global product supplies, particularly for diesel, strengthened margins, and demand for US exports, according to the US Energy Information Administration (EIA). The strong operating rates coincided with a widening profitability gap between US refiners and those in Europe and Asia. In its October Oil Market Report, the International Energy Agency (IEA) said relatively inexpensive crude supplies helped US refiners achieve record margins in September, while rising feedstock and freight costs squeezed competitors overseas. Despite elevated utilization, total US refinery output reached only its highest level since 2019. US refining capacity has declined 4% since then, limiting the output gains available from higher operating rates, EIA said. Utilization eased during the first 3 weeks of October from its summer highs, but remained above the 2021–25 seasonal average. US margins outperform IEA’s US Gulf Coast light sweet cracking margin indicator averaged $49.84/bbl in September, up $5.97/bbl from August. Heavy sour coking margins rose $11.57/bbl to $61.36/bbl, reflecting the advantage of access to lower-cost crude. By comparison, light sweet cracking margins averaged $30.15/bbl in Northwest Europe and $19.26/bbl in Singapore, down $5.97/bbl and $7.34/bbl, respectively. Medium sour cracking margins briefly turned negative in both regions during September. Record tanker freight rates widened regional crude cost differences, helping US refiners outperform competitors in Europe and Asia. IEA warned that deteriorating profitability could prompt some European refiners to reduce runs despite tight product supplies and low inventories. US product inventories also remained tight despite high refinery activity. Combined gasoline, jet fuel, and gasoil/diesel stocks entered October at 352 million bbl, their lowest seasonally adjusted level since 2008, according to IEA. Robust exports and autumn maintenance added pressure on inventories, while unplanned Midwest refinery outages further supported

US crude oil inventories for the week ended Oct. 16, excluding the Strategic Petroleum Reserve, decreased by 3.1 million bbl from the previous week, according to data from the US Energy Information Administration (EIA). At 412.5 million bbl, US crude oil inventories are 3% below the 5-year average for this time of year, the EIA report indicated. Gasoline inventories decreased 3.0 million bbl, 5% below the 5-year average. Propane-propylene inventories decreased 500,000 bbl, 13% above the 5-year average. Total commercial petroleum inventories decreased by 8.5 million bbl for the week. Distillate inventories increased 1.7 million bbl, 9% below the 5-year average. US crude oil refinery inputs averaged 16.6 million b/d for the week ended Oct. 16, which was 34,000 b/d more than the previous week’s average. Refineries operated at 93.4% of capacity. Gasoline output averaged 9.8 million b/d, and distillate production increased to 5.2 million b/d. Crude oil imports decreased 291,000 b/d to 5.8 million b/d. The 4-week average of 6.1 million b/d is 2.8% above the year-ago level. Gasoline imports averaged 281,000 b/d; distillate imports averaged 117,000 b/d. Over the past four weeks, total product supplied averaged 21.1 million b/d, up 3.2% year over year. The 4-week average for gasoline product supplied increased 1.5% year over year to 8.7 million b/d, while the 4-week average for distillate product supplied decreased 2.4% to 3.9 million b/d. The 4-week average for jet fuel product supplied increased 1.4% year over year.

Adura Energy has received North Sea Transition Authority (NSTA) consent to develop Jackdaw natural gas and condensate field, off the coast of northeast Scotland, following consideration of the company’s environmental statement and agreement to the grant of consent.  NSTA originally granted development consent for Jackdaw to Shell UK in June 2022. But this consent was deemed unlawful and overturned by the Scottish courts in January 2025, following findings that initial environmental approvals had failed to account for the impact of secondary emissions. Estimated reserves at Jackdaw are 72-200 MMboe. The new approval clears the way for Jackdaw to start supplying gas to British homes, power stations, and businesses within weeks, according to Adura, substantially all of the project’s physical infrastructure already having been completed. Alongside Jackdaw’s reapproval, the UK government announced it will launch a £2-billion ($2.7-billion) energy wealth fund fueled by North Sea oil and gas tax revenues to reinvest directly into renewable projects. Adura is a joint venture formed when Shell and Equinor ASA merged their UK offshore oil and gas businesses. The associated Rosebank oil field is following Jackdaw in the regulatory process. An NSTA decision on it is anticipated in the coming weeks. A spokesperson for INEOS Group Ltd. said that “Jackdaw approval is welcome, but the government must stop taxing the North Sea into decline. Approving Jackdaw is the right decision, but this does not stop the damage being done to the North Sea. And it appears Rosebank remains stuck in political limbo.”

WASHINGTON— The U.S. Department of Energy today announced a Request for Proposal for an exchange of up to 315,000 barrels of ultra-low sulfur distillate (fuel oil) from the Northeast Home Heating Oil Reserve (NEHHOR). This solicitation is structured to mitigate supply chain challenges disrupting fuel oil supply. The announced exchange underscores the Trump Administration’s commitment to reliable energy access and lowering costs. Under the terms of the exchange, borrowing companies must return the same volume of fuel oil plus a premium, ensuring that NEHHOR is refilled ahead of the 2027–2028 heating season. “The Trump Administration is committed to doing everything in our power to lower energy costs for the American people,” said U.S. Secretary of Energy Chris Wright. “After receiving Senators Collins’ and Kings’ letter and extensive discussions with Senator Collins, I have directed the Department to exchange barrels from our Northeast Home Heating Oil Reserve to mitigate heightened home heating oil costs during the upcoming winter. Of course, this is a temporary measure to solve a temporary supply disruption. I encourage the governors of New York and New England to work with the Trump Administration to build the Constitution Pipeline and replace home heating oil with low-cost natural gas. Doing so would save their residents billions of dollars in home heating and electricity costs.” DOE will exchange up to 315,000 barrels of fuel oil from NEHHOR storage sites in South Portland, Maine; Boston, Massachusetts; and New Haven, Connecticut. Fuel transfers or deliveries are scheduled to be completed by November 13, 2026. The minimum offer quantity is 25,000 barrels, but not to exceed 30,000, and the volume available per site shall not exceed 150,000. Offerors may submit multiple offers. This approach ensures a competitive bidding process in which both fuel retailers and terminal holders can participate and that product can

A/S Norske Shell and its license partners are investing in a new drilling and well intervention campaign at Ormen Lange in the Norwegian Sea. An investment figure was not disclosed. The campaign, which follows the 2025 start of subsea compression to compensate for the natural pressure drop in the reservoir, includes two sidetracks from existing wells to access additional gas volumes, as well as an option for modifications to a third well. First production is expected in 2029, the operator said in an early October release. The campaign is expected to increase recovery by about 3.5 billion cu m of gas over the life of the field. “Ormen Lange has been producing for almost 20 years, but there is still room for further resources. This investment will enable us to produce gas volumes that today’s wells cannot reach efficiently, thereby creating additional value from the field while contributing to reliable gas supplies to Europe,” said Claire Richardson-Dissel, asset manager for Ormen Lange at Norske Shell. Ormen Lange  Norway’s second largest developed gas field, Ormen Lange was Norway’s first deepwater field development. The field is developed without a platform, with all production from subsea installations installed at depths of up to 1,100 m. Gas from sandstone at a depth of almost 3,000 m is piped up the Storeggakanten peninsula to the onshore plant at Nyhamna in Aukra municipality, where it is processed before export to the UK and the EU.  Shell is operator of Ormen Lange with 17.8% interest. License partners are Petoro AS (36.5%), Equinor Energy AS (25.4%), Orlen Upstream Norway AS (14%), and Vår Energi AS (6.3%).

Saturn Oil & Gas Inc., Calgary, has agreed to acquire privately held Corex Resources Ltd. for $302 million (Can.) through a plan of arrangement, expanding its light oil position from southeast Saskatchewan into southwest Manitoba. The acquisition adds about 7,000 b/d of 100% light oil-weighted production and increases Saturn’s forecast 2026 exit production rate to 54,000-56,000 boe/d from its previous outlook, the company said Oct. 19. Corex’s assets lie adjacent to Saturn’s existing southeast Saskatchewan operations. The company said the transaction adds 323 gross (279 net) identified drilling locations, including booked and unbooked development opportunities, as well as potential open-hole multilateral targets. The acquired asset base is characterized by an average working interest of about 96% and includes operated production infrastructure, pipelines, and other infrastructure. Saturn said it has identified about $6 million/year in operating and efficiency synergies. The addition of Corex’s production is not expected to affect Saturn’s full-year 2026 average production guidance of 43,000-44,000 boe/d, but, Saturn said, the deal, along with Saturn’s expanded 2026 capital program, positions the company to exit 2026 with production of 54,000-56,000 boe/d, establishing a base for 2027. The transaction is expected to close in December 2026, subject to customary conditions.