U.S. distillate demand highest since 2007 (8/22/2018)

U.S. demand for distillate fuel oil is at its highest level in more than a decade. During the first five months of 2018, U.S. distillate fuel oil product supplied (the volume delivered out of the primary supply chain, which is a proxy for demand) averaged 4.2 million barrels per day (b/d), an increase of more than 270,000 b/d from the 2017 level and the highest level since 2007 (Figure 1). This strong U.S. demand is supporting distillate prices, crack spreads, and production. At the same time, U.S. distillate exports are down from record-high levels set in 2017. Despite record refinery runs and lower exports, distillate inventories in the United States have declined because consumption has outpaced the rate at which inventories have been replenished. ... More »