Energy

Phillips 66 says market conditions in Q3 2021 to determine refinery utilization

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HOUSTON, Aug 3 (Reuters) - Independent U.S. refiner Phillips 66 (PSX.N) said on Tuesday that market conditions in the third quarter of 2021 would determine refinery utilization levels.

The demand for refined products faces growing headwinds from rising fears about the Delta variant of the coronavirus reducing travel further than is usually expected after the end of the U.S. summer driving season.

Phillips 66 said its 13 refineries in the United States and Europe ran in the second quarter of 2021 at 88% of their combined capacity of 2.2 million barrels per day (bpd).

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In the second quarter, U.S. refinery utilization rose from 84% of national capacity to near 93% by the end of June, according the U.S. Energy Information Administration.

Phillips 66's refineries had a utilization rate of 90% in July, said Chief Financial Officer Kevin Mitchell during a Tuesday afternoon conference call.

Robert Herman, executive vice president of refining, said demand was higher in the second quarter for gasoline as U.S. drivers returned to roads with the end of lockdowns and work-from-home orders.

Phillips 66's refineries are configured to produce more distillates than gasoline, Herman said.

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Reporting by Erwin Seba; editing by Jonathan Oatis and Grant McCool

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