US refinery runs to stay low for years-Conoco exec

NEW YORK, Sept 3 (Reuters) - U.S. refineries will continue to run at current reduced utilization rates in the next few years due to slowing demand for fuel, a ConocoPhillips (COP.N) executive said on Wednesday.

"Utilization rates have come off from their highs of the last few years... we expect this trend to continue for the next few years," James L. Gallogly, ConocoPhillips executive vice president of refining, marketing, and transportation, said in a presentation to market analysts.

With U.S. demand for gasoline waning under the weight of high prices and a slowing economy, gasoline supply in the market will continue to be plentiful, Gallogly said.

Refineries had been operating at an average above 90 percent of capacity, but this year refineries have been operating at much lower capacities nearer to an average of 85 percent, according to Gallogly.

Historically, utilization rates peak during the U.S. summer driving season to meet demand, but this year, refineries failed to ramp up production due to poor profit margins and weak demand.

Utilization rates may sink even lower later this year as U.S. refiners bring more units down for maintenance during the fall maintenance season to minimize losses from weak refinery margins, according to market analysts. [ID:nN07283406] (Reporting by Rebekah Kebede; Editing by Marguerita Choy)