U.S. Refineries Shift Output From Gasoline to Diesel and Jet Fuel

The shift departs from the industry’s usual pattern of producing 45 to 50 barrels of gasoline for every 100 barrels of crude processed. Distillate fuel oil, which includes diesel and heating oil, exceeded its five-year average yield every month through August. Jet fuel’s share of refinery output topped 12% in March for the first time on record and stayed at or above that level through August, the latest month with available EIA data.

The changing mix reflects pressure on global fuel supplies. The Iran war has disrupted Middle Eastern refining, while Ukrainian attacks on Russian refineries have further constrained diesel and other petroleum products. Global refinery crude runs fell by 4.8 million barrels per day in the second quarter. Throughput rose by 1.8 million bpd in the third quarter but remained about 5% below the year-earlier level, according to EIA data released earlier this week.

U.S. refineries increased crude processing by 500,000 bpd in each of the second and third quarters, helping offset lost output elsewhere. Diesel prices reached their highest nominal levels on record in September. Even with gasoline prices elevated, the stronger returns on diesel and jet fuel are prompting U.S. refiners to prioritize middle distillates, increasingly orienting domestic production toward a global market short of those fuels.