From the EIA’s excellent series, Today in Energy, here…
“U.S. demand for distillate has been generally increasing since it reached an annual low in May (based on the rolling four-week average). The increasing demand for distillate fuel has contributed to the recent inventory decline. As of the week ending November 20, weekly EIA data indicate that distillate demand reached 4.2 million barrels per day (b/d), similar to the previous five-year average for this time of year.
In addition to rising demand from the trucking and railroad industries, refineries have been making less distillate fuel. Gross inputs into refineries measured 14.2 million b/d as of November 20, or 14% lower than the previous five-year average for this time of year. Distillate yields, or the ratio of distillate fuel production to refinery inputs, have fallen since reaching a record high of 38% in April, and more recently, it measured 31% in the week ending November 20, which is much closer to the previous five-year average for this time of year.”
And the NY diesel/WTI spread based on Jan futures has recovered a tiny bit (chart from CQG.com):
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