SOne of the reasons Europe is key to distillate prices is that it has shifted dramatically towards diesel and away from gasoline, and much of that increased diesel demand is met from imports.
	SThis chart illustrates Europe’s shift in preference for distillates over gasoline relative to the rest of the  world, where the mix of gasoline and distillate demand has not changed much.
		–The chart looks at the relationship between total distillate demand, which consists of diesel, heating oil, and jet fuel, and the demand for gasoline.  The change in distillates captured in the chart is driven mainly by changes in diesel demand.
		–Note that outside of Europe, the relative flat relationship between gasoline and distillate indicates that, while diesel is growing, so is gasoline.
	SThe chart indicates that in the short term, a major source of distillate pressure relative to gasoline seems to be coming from Europe. (While not shown on the chart, the U.S. share of distillate has shifted slightly higher, and the rest of the world has actually shifted a bit towards more gasoline.)