Midwest distillate inventories rise due to increased refining activity and logistics constraints (8/2/2023)

Higher regional refinery runs and constraints on moving product outside the region have contributed to rapid increases in Midwest (PADD 2 ) distillate inventories (Figure 1). From June 9 to July 14, regional inventories of distillate fuel oil, usually consumed as diesel, increased by 4.7 million barrels (18%). The changes in regional distillate inventories are contributing to increased volatility in Midwest distillate prices and crack spreads. Before the recent rise, Midwest regional inventories had been trending at or below the five-year (2018–2022) low since April 2023, but as of July 21, they are now well above the five-year low and remain around 1.3 million barrels below the five-year average. …Higher regional refinery runs and constraints on moving product outside the region have contributed to rapid increases in Midwest (PADD 2 ) distillate inventories (Figure 1). From June 9 to July 14, regional inventories of distillate fuel oil, usually consumed as diesel, increased by 4.7 million barrels (18%). The changes in regional distillate inventories are contributing to increased volatility in Midwest distillate prices and crack spreads. Before the recent rise, Midwest regional inventories had been trending at or below the five-year (2018–2022) low since April 2023, but as of July 21, they are now well above the five-year low and remain around 1.3 million barrels below the five-year average. …  Read More