U.S. distillate exports reached 1.9 million barrels per day in the first week of August, the highest weekly level on record. At the same time, domestic inventories are at their lowest seasonal level in three decades. Disruptions in Russia and the Middle East have increased global demand for U.S. diesel. Russian refinery problems have reduced exports, while the Strait of Hormuz conflict has disrupted Middle East supplies. The timing could be a concern for agriculture. Diesel demand typically increases during fall harvest, while refineries also begin seasonal maintenance. Analysts warn continued global disruptions could keep diesel supplies tight and prices elevated heading into fall and winter.
