Key facts
- US diesel exports reached a record 1.9 million barrels per day last week.
- Global supply shortages, particularly in Europe, are driving demand for US diesel.
- US distillate stockpiles have fallen to their lowest seasonal level since 1996.
- Recent cargoes have been heading to northwestern European ports.
- The upcoming winter heating season is expected to increase demand for diesel.
US distillate exports surged to a record last week as global supplies tightened, with disruptions in the Gulf area, maritime chokepoints, and Ukrainian drone strikes on Russian energy infrastructure benefiting US refiners. Samantha Dart, co-head of global commodities research at Goldman Sachs, noted that diesel is particularly vulnerable due to upcoming seasonal demand strength and supply-side issues, including restricted Russian exports. Analyst Daan Struyven previously warned that diesel is at the epicenter of the supply squeeze. US energy exporters shipped a record 1.9 million barrels to overseas customers last week, with shipments exceeding 1.5 million barrels a day for five consecutive weeks, primarily heading to northwestern European ports. This surge in exports has led to US distillate stockpiles falling to their lowest seasonal level since 1996, raising the risk of a tighter domestic market ahead of increased fall demand.