Citgo sets new record for ultra-low sulfur diesel exports amid global supply crunch

Citgo achieved a record in ultra-low sulfur diesel (ULSD) exports from its Brownsville, Texas terminal during the second quarter. The company's performance was bolstered by a global shortage of the fuel, exacerbated by the conflict between the United States and Iran.

This surge in demand led to a doubling of ULSD export sales from Brownsville compared to the previous record set in the third quarter of 2025, according to a company statement. Fuel prices, particularly for distillates, rose sharply in the U.S. since late February due to the supply constraints. In response, U.S. refineries maximized diesel production. Citgo's Lake Charles refinery in Louisiana, with a capacity of 471,000 barrels per day, also hit a record distillate output in April.

Other major players are also seeing a boom in their diesel businesses. Marathon Petroleum cited demand in Latin America and Europe as key drivers, while Chevron anticipates a tighter product market in the third quarter, driven by European demand. Citgo's overall international activities in the second quarter were boosted by sales in Europe, the Caribbean, and South Africa, contributing to a profit of $936 million, a substantial jump from $100 million the previous year, attributed to strong refining margins.

Despite its operational successes, Citgo's future ownership remains in flux. The company's U.S. refineries, lubricant plants, and distribution assets have been subject to auction for years. In November, a federal judge confirmed a $5.9 billion bid from Amber Energy, an affiliate of hedge fund Elliott Investment Management. However, the sale is still pending, with appeals ongoing, leaving Citgo's status uncertain.