SWith distillate prices remaining higher than usual as we moved from winter into the summer driving season in 2005, U.S. refineries responded.  U.S. refineries have been running with unseasonably high distillate yields – more like winter yields.
	SAs the chart shows, refinery, distillate yields this summer were about 2% above normal, which translates to about 300 thousand barrels per day more distillate production.
	SThese high distillate yields allowed distillate inventories to recover from the winter.  And strong gasoline imports supported gasoline supply.
	SHigh summer gasoline demand caused gasoline inventories to draw down in July and August, and during August, refiners began shifting distillate yields down and gasoline yields up.  Then Katrina and Rita severely reduced refinery production, and refiners increased gasoline yield to maximum levels by further reducing jet and distillate yields.