US distillate fuel exports hit record high amid supply concerns

Investing.com -- The United States exported 1.9 million barrels per day of distillate fuel last week, setting a new record as domestic inventories declined further, according to data released Wednesday by the US Energy Information Administration.

The figure surpassed the previous record established in May. Distillate fuel includes diesel, heating oil, and other related products.

Last week marked the fifth consecutive week with exports exceeding 1.5 million barrels per day. This sustained outflow has reduced the country's fuel supplies despite refiners operating at maximum capacity to produce diesel.

Global diesel markets have faced disruptions since the beginning of the US-Iran conflict, which has prevented crude oil and refined product shipments from passing through the Strait of Hormuz. The situation intensified after months of Ukrainian strikes on Russian refineries, which reduced fuel production capacity and led Moscow to ban most diesel exports.

These developments have positioned the US as one of the few global diesel producers with sufficient capacity to manufacture and export fuel.

Distillate fuel inventories in the US reached their lowest seasonal level since 1996 as of last week. The depleted stockpiles raise concerns ahead of the fall season, when demand for heating oil increases in the Northeast US and other regions.

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