|SThis chart combines the gasoline and
distillate imbalances in Europe.
Distillate products (diesel, heating oil, and jet fuel) are imported
in increasing quantities, and excess gasoline is exported in increasing quantities
|S Note that in 2004, distillate imports grew
less than gasoline exports. Is that a situation that is likely to continue?
Does it reflect growing difficulty in finding economic distillate imports?
|SLooking to the future, imports are likely to
be more difficult to locate as European sulfur specifications are
lowered. This could mean a larger
price incentive for diesel supply, and a resulting push to produce more
distillate at the expense of gasoline production. Still, this may not happen quickly.