Implications for Future Distillate Prices
•Seen higher growth in distillates worldwide compared to gasoline in recent years
•Europe is a key factor in growing shift towards diesel
•May not have permanent distillate price parity with gasoline, but trends favor higher distillate prices
•Frequency and duration of future distillate price strength will influence type of refinery investment
SWe have seen some recent strong growth in distillate demand and a growing imbalance in Europe – a region  that relies increasingly on distillate imports, and produces growing amounts of excess gasoline.

SWhile we may not have a permanent shift in distillate balance and price relative to gasoline, we have been trending this direction for some time.  Exactly how the distillate market might evolve is still up in the air, and the way in which it evolves will influence the types of refinery investments that are made as well – particularly in Europe.