US Distillate Fuel Exports Hit Record 1.9 Million Barrels

The United States Energy Information Administration reported that US exports of distillate fuel, primarily diesel and heating oil, reached a record 1.9 million barrels a day last week. This surge responds to a global diesel shortage precipitated by the US-Iran war, which blocked shipping through the Strait of Hormuz, and Ukrainian attacks on Russian refineries that prompted the Federal Government of Russia to ban most of its diesel exports.

Shipment patterns shifted throughout the summer. While exports flowed toward the Caribbean and South America in early July, recent shipments have targeted northwestern Europe.

The sustained level of exports has significantly drained domestic stockpiles. These reserves have fallen to their lowest seasonal levels since 1996, raising concerns about potential supply risks for the upcoming fall heating season in the US Northeast.