US to remain net exporter of diesel fuels - EIA analyst

24 March 2009 17:15  [Source: ICIS news]

SAN ANTONIO (ICIS news)--Surplus domestic distillate production capacity combined with strong global demand for diesel fuels will keep the US as a net exporter of diesel fuels and cause refiners to shift their fuel mix away from gasoline production, industry experts said on Tuesday.

“With the total vehicle fleet still shifting to diesel and growth in commercial transport in Europe, distillate demand will continue to rise and gasoline to fall,” petroleum analyst Joanne Shore of the US Energy Information Administration (EIA) said.

Shore was speaking at the 107th annual meeting of the National Petrochemical and Refiners Association.

In 2008, heightened European and Latin American diesel demand drove the US to export diesel fuels, and that trend was expected to continue, Shore said.

According to the EIA, US distillate net imports in 2006 were 150,000 bbl/day.

However, in 2008, that number shifted to 315,000 bbl/day of exports, reflecting a net change of 415,000 bbl/day.

“In spite of the current economic downturn, the longer-term picture seems to justify refiners taking steps to increase distillate production versus gasoline,” Shore said.

Echoing Shore’s statements was consultant Mark Routt, of KBC Advanced Technologies, who said that rising US distillate exports to Europe will cause European refiners to turn down distillate production.

“Increased US exports of distillate to Europe could result in European refiners reducing runs as incremental distillate becomes available,” Routt said.

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