Refinery Utilization.
In plain English
Refinery utilization measures how much of the nation's refining capacity is actively turning crude oil into gasoline and other fuels, shown as a percentage. High utilization means refineries are running near full tilt; low utilization, often during maintenance season or after a storm, means less gasoline is being produced. Because it controls how much fuel reaches the market, utilization is a key swing factor in gasoline prices, sometimes more than the price of crude itself.
01Why it matters
When refineries run below capacity, gasoline can get tight and expensive even if crude oil is cheap, which is why this number moves pump prices.
02The math, step by step
A hurricane knocks several Gulf Coast refineries offline, dropping utilization from 92 to 80 percent. Even with steady crude prices, gasoline supply tightens and pump prices rise.
03What this is NOT
Refinery utilization is NOT how much oil is pumped from the ground. It measures how much crude is being processed into fuels, a separate step that can bottleneck supply on its own.