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US Distillate Inventories Normalise as Fuel Demand Slows

OIL PRODUCTS

Recent builds in US distillate stocks have pushed inventories to normal levels for the first time since early 2022, a sign that markets are steadying, according to Reuters.

  • Stocks are currently within 3% of the five-year seasonal average.
  • Refiners have been ramping up to meet demand for fuels such as diesel amid lost supplies from Russia.
  • Strong activity and a continued slump in diesel demand from manufacturing and freight has allowed stocks to build.
  • Us refineries were running at around 93% utilisation capacity in recent weeks, the strongest level since 2019.
  • However, a cold weather system from the arctic which is set to hit the US may cause a larger stock draw in coming days, as distillate heating demand rises.

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