Slide 9 of 27
As the average production curve shows, refiners normally increase distillate production in the fall to top off stocks in preparation for winter. Because excess gasoline is also produced during this time, refiners donít want to run through the entire winter at these high distillate production rates, so runs generally fall back in January as high distillate demand draws down the stocks that were built previously.
In spite of very high stocks, distillate production remained relatively strong this past summer as refinery runs stayed high to meet gasoline demand.
But in order for stocks to fall back into the normal range -- even with a normal winter -- production will have to fall back as shown.