Valero Energy Expects to operate its refineries at about 70% of capacity in the second quarter of this year, as an effort to balance product supply and demand as US states start to lift coronavirus-related lockdowns gradually. US refiners lowered their runs in mid-March when gasoline demand began to plummet amid stay-at-home orders imposed by several states.
Valero will cut runs at some units to as low as 60% to 65%, but will refrain from shutting them down. Valero's CEO Joe Gorder said shutting a unit down would result in restart which often requires full maintenance. So far, Valero has shut down a 100,000 bpd gasoline-producing unit at its 215,000 bpd St. Charles facility in Louisiana.
Valero’s CCO Gary Simmons said the company had already seen a recovery in Gasoline demand. He expected demand for Valero’s gasoline to have increased by 9% last week, compared to early April. This is in line with EIA data showing a 3.7 million-barrel decrease in US gasoline stocks last week.
