|SThis chart illustrates the dramatic product mix change that
has taken place in Europe relative to the rest of the world by graphing
middle distillate demand’s share of total demand for gasoline and middle
distillates. With Europe representing
about 21% of the world’s gasoline and middle distillate consumption, it has
|SMiddle distillates in this graph includes diesel, heating
oil, kerosene, and jet fuel, and gasoline includes naphtha. But the change in middle distillate
demand’s share captured in the chart is driven mainly by changes in diesel
|SWhile not shown on the chart, the U.S. share of middle
distillates has shifted slightly higher (2% change since 1985), and the rest
of the world has actually shifted a bit towards more gasoline.
|SEurope’s strong shift away from gasoline to distillate has
created some supply challenges for itself that have affected the U.S.
gasoline and distillate markets, as will be discussed.