Overview
- The Energy Information Administration said Thursday that Petroleum Supply Monthly data through August 2026 show U.S. refiners have materially reoriented production toward distillate fuel oil and jet fuel.
- From January through August 2026, gasoline yields averaged below 45 percent and stayed under the five‑year low in every month while distillate yields exceeded the five‑year average each month.
- Jet fuel output rose sharply with fleetwide average yields topping 12 percent from March through August, a level that gave refiners a strong financial incentive to favor middle distillates.
- Global supply shocks — including disruptions to Middle Eastern and Russian refining, attacks on shipping and export curbs — tightened distillate availability and pushed diesel prices to record nominal highs in September.
- Policy steps in October, such as coordinated diesel releases and temporary waivers, were introduced as short‑term relief but analysts warn restoring normal distillate inventories could take many months to years, with continued price pressure possible into 2027.