US-based refiner Citgo reported record high exports of ultra-low sulphur diesel (ULSD) from its terminal in Brownsville, Texas, in the second quarter, as the prolonged US-Iran war limited global supplies of the fuel.
ULSD export sales at Brownsville in the second quarter more than doubled the previous high set in the third quarter of 2025, Citgo said in an earnings release. The company did not disclose specific volumes.
US fuel prices, especially distillates, have soared since late February because of global supply shortages caused by the US-Iran war. The higher distillate prices have led many US refiners to maximize diesel yields, with Citgo saying its 471,000 b/d Lake Charles refinery in Louisiana reached record distillate production in April. US independent refiner Marathon Petroleum also recently cited demand in Latin America and Europe for its booming diesel business, while Chevron pointed to an increase in European diesel demand as one reason for an expected tighter products market in the third quarter.
Citgo said on Thursday that its overall international market activities in the second quarter were led by cargoes delivered to Europe, the Caribbean and South Africa.
Citgo reported a profit of $936mn in the second quarter, up from $100mn in the second quarter of 2025 on strong refining margins.
Auction and arrest limbo
Citgo's status has been unclear for many years as its three US refineries, lubricant plants and midstream and retail assets are being auctioned off in a US court to satisfy debt defaults and expropriations owed by its parent company, Venezuelan-owned PdV.
A US federal judge in November affirmed a $5.9bn bid from Amber Energy, an affiliate of New York hedge fund Elliott Investment Management, as the winner in the auction. Amber's bid included a separate agreement to settle litigation claims with 75pc of a group of PdV bondholders for $2.13bn. The sale is not finalized and appeals in the case are pending in a US court.
The US' arrest of former Venezuelan president Nicolas Maduro on 3 January and the lifting of sanctions on Venezuela's oil exports have added new uncertainties to Citgo's fate.
Even though it is owned by PdV, Citgo has operated under a board appointed by the Venezuelan opposition and vetted by the US government since 2019, after the US denounced Venezuela's 2018 presidential election as illegitimate. Since then, the US has recognized the government led by interim president Delcy Rodriguez, a long-time Maduro ally, and restarted diplomatic relations.
