Key facts
- Citgo reported record ultra-low sulphur diesel (ULSD) exports from its Brownsville, Texas terminal in Q2.
- ULSD export sales at the terminal more than doubled the previous record from Q3 2025.
- US fuel prices, especially distillates, have soared due to global supply shortages from the US-Iran war.
- Citgo's Lake Charles refinery reached record distillate production in April.
- Citgo reported a Q2 profit of $936 million, a significant increase from $100 million in Q2 2025.
US refiner Citgo has reported record exports of ultra-low sulphur diesel (ULSD) from its terminal in Brownsville, Texas, during the second quarter. This surge in exports is attributed to global supply shortages of the fuel, intensified by the ongoing US-Iran conflict, which has driven up US fuel prices.
Citgo stated that ULSD export sales at Brownsville in the second quarter more than doubled the previous record set in the third quarter of 2025, though specific volumes were not disclosed. The company's Lake Charles refinery in Louisiana also achieved record distillate production in April. Other US refiners, such as Marathon Petroleum and Chevron, have also noted strong diesel demand in international markets, particularly in Latin America and Europe, contributing to an expected tighter products market.
Citgo's overall international market activities in the second quarter saw significant cargo deliveries to Europe, the Caribbean, and South Africa. The company reported a substantial profit of $936 million for the second quarter, a significant increase from $100 million in the same period of 2025, driven by strong refining margins.
Meanwhile, Citgo's future remains uncertain as its assets are being auctioned off in a US court to satisfy debt defaults of its parent company, Venezuelan-owned PdV. A US federal judge affirmed a $5.9 billion bid from Amber Energy, an affiliate of Elliott Investment Management, but the sale is not finalized, and appeals are pending. The recent arrest of former Venezuelan president Nicolas Maduro and the lifting of sanctions on Venezuela's oil exports have introduced further complexities to Citgo's ownership status.