While Gasoline Has the Limelight, Distillate Is Being Watched

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• While the public is currently focusing on gasoline, EIA is watching the distillate market closely.

• As the normal stock band shows, we typically build distillate stocks during the summer for use during the winter.

• Given the low gasoline stocks, it is unlikely refinery yields will be tilted to diesel versus the normal pattern, so at best, the distillate fuel oil build will be normal. In this case we would begin the winter with below average stock levels.

• Below average stock levels translate to increased potential for price volatility.