The cold weather that has gripped much of the US has supported diesel prices, but it's unclear how long the strength will last. Typically, around this time of the year, traders have already put the winter market behind them and pivoted to gasoline and the spring. Not this time. Nonetheless, the market remains relatively well supplied by high refiner output despite the persistent cold weather. US product inventories have continued to grow since mid-December as refineries run full throttle. High demand for heating oil and diesel is justifying the more robust inventories, with disruptions to import and possibly refining infrastructure as key variables. Utilization for the period from mid-December to mid-January averaged about 92%, which would have been higher but for severe cold extending as far south as Texas in early January, disrupting operations at at least three refineries.
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