By reducing crude runs and increasing the gasoline yields, refiners have made progress in reducing the oversupply of middle distillates. However, gasoline demand falling, refiners have had to make even deeper cuts in crude runs so that as of the latest EIA data, October 16, crude runs were at 13.03 million barrels per day, nearly as low as last March when the COVID-19 was declared a pandemic.
Distillates stocks have reduced, more in accordance with the normal seasonality than demand and are still 40 million barrels higher (25%) than last at this time.
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Data source is EIA
Chart source is Fundamental Analytics
Originally Published on October 27, 2020
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