|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
|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
|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.