{"id":64003,"date":"2022-11-02T08:59:19","date_gmt":"2022-11-02T13:59:19","guid":{"rendered":"https:\/\/olduvai.ca\/?p=64003"},"modified":"2022-11-02T08:59:19","modified_gmt":"2022-11-02T13:59:19","slug":"why-whats-throwing-the-distillates-market-out-of-whack","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=64003","title":{"rendered":"Why – What’s Throwing The Distillates Market Out Of Whack?"},"content":{"rendered":"
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Why – What’s Throwing The Distillates Market Out Of Whack?<\/a><\/h3>\n<\/header>\n
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The U.S. market for distillates has been crazy the past few months \u2014 especially in PADD 1 \u2014\u00a0 and given all that\u2019s going on, it\u2019s likely to stay that way for months to come. Inventories of ultra-low-sulfur diesel, heating oil and other distillates are at their lowest levels for this time of year since before the EIA started tracking them 40 years ago and diesel prices are in the stratosphere, all despite\u00a0diesel crack spreads<\/a><\/u>\u00a0being in record-high territory \u2014 a strong incentive for refineries to churn out more distillate. In today\u2019s RBN blog, we discuss the many factors affecting distillate supply, demand, inventories and prices and take a look ahead at where the market may be headed next.<\/p>\n

It may be true (technically speaking) that everything that comes out of a refinery is a distillate \u2014 after all, the first step in refining (after removing salt from crude oil) is boiling the oil and running it through an atmospheric\u00a0distillation<\/em>\u00a0unit to separate crude into diesel oil, kerosene, heavy naphtha, light naphtha and other distilled products. But when we talk about distillates, we\u2019re really talking about \u201cmiddle distillates\u201d \u2014 so-named because they condensate in the middle of the fractional distillation tank. These would include diesel and heating oil and usually jet fuel\/kerosene, while vacuum gasoil (VGO) is not included. (The terminology here can get a bit tricky as our friends outside the U.S. typically use the word \u201cgasoil\u201d to refer to middle distillates generally, while Americans often use the word \u201cgasoil\u201d to refer to VGO specifically.) Middle distillates typically account for 25% to 50% of a refinery\u2019s yield, depending on, among other things, the facility\u2019s equipment and the qualities of the crude slate used. Refiners can tweak their operations and their crude slates to ramp up (or down) how much middle distillate they produce.<\/p>\n

\u2026click on the above link to read the rest\u2026<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/article>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Why – What’s Throwing The Distillates Market Out Of Whack? The U.S. market for distillates has been crazy the past few months \u2014 especially in PADD 1 \u2014\u00a0 and given all that\u2019s going on, it\u2019s likely to stay that way for months to come. Inventories of ultra-low-sulfur diesel, heating oil and other distillates are at […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[3],"tags":[14047,32879,328,33327,33326,827,834],"class_list":["post-64003","post","type-post","status-publish","format-standard","hentry","category-energy-2","tag-diesel","tag-diesel-shortages","tag-fossil-fuels","tag-housley-carr","tag-refining","tag-united-states","tag-us"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/64003","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=64003"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/64003\/revisions"}],"predecessor-version":[{"id":64004,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/64003\/revisions\/64004"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=64003"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=64003"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=64003"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}