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U.S. diesel exports hit record pace as stocks fall
Exports averaged 1.9 million barrels per day last week, while diesel inventories are 12% below the five-year average.
U.S. diesel fuel exports hit an all-time high last week, driven by fuel shortages abroad amid the Middle East energy crisis, according to Energy Information Administration data cited by OilPrice.
The EIA data put exports at a rate of 1.9 million barrels per day, surpassing the prior spring record. The same data also showed diesel production fell and inventories declined, leaving stocks 12% lower than the five-year average.
OilPrice said most U.S. diesel exports are going to Europe, where supply is especially tight partly due to declining local refinery output as governments pursue energy transition plans, despite higher EV sales.
With refineries unable to produce more diesel, sellers have been drawing down inventories, which OilPrice reported were at the lowest level since 1996. OilPrice added that the situation could become more problematic as the U.S. heating season approaches, since diesel is used to produce heating oil for winter demand.