EIA expects current, record-high U.S. distillate inventories to fall gradually through the winter heating season (10/15/2020)

U.S. distillate fuel oil inventories remained high through summer 2020 as a result of production outpacing demand, which continues to be affected by responses to the 2019 novel coronavirus disease (COVID-19). Although about two-thirds of distillate in the United States is consumed for on-highway use each year, demand typically increases during the fall harvest (October-November) in the agriculture sector and during the winter heating season (October–March) in the residential sector. The U.S. Energy Information Administration (EIA) expects that increased demand in these sectors will help to draw down high U.S. distillate inventories, but inventories are still likely to remain higher than the five-year (2015–19) average throughout most of the upcoming winter season. EIA forecasts that high inventories and lower crude oil prices will continue putting downward pressure on diesel prices through the 2020–21 winter season. ... More »