Distillate in Depth – The Supply, Demand, and Price Picture

Distillate and Gasoline Relationships --Temporary or Fundamental Change?

•Unusual distillate and gasoline prices in 2005 – Not just a U.S. issue

•

•Explore Europe/US light product supply/demand balance to illustrate market dynamics

–Europe’s product imbalance

–U.S. product imbalance

–How they fit together

–

•Current distillate market and supply response


	SThe changes in European demand for gasoline and diesel have created a growing imbalance between refinery production and product demand. Import and exports have been one of the primary means of resolving the imbalance.

	SThe U.S. product markets have been important in balancing European refinery production and European product demands. It’s important to understand the fit between these regions as we look to the future.