Harvest season to boost US distillate fuel oil demand in autumn, EIA says
Oct 4 (Reuters) - Distillate fuel oil consumption is expected to increase in autumn as diesel-powered agricultural equipment is used to harvest and transport crops, the U.S. Energy Information Administration said on Friday.
The harvest tends to peak in mid-October and continue through November, when the start of the winter home heating season also supports distillate fuel oil demand, the EIA said.
Weak U.S. demand for diesel has sharply lowered refiner margins this year as industrial consumption has slowed due to weaker economic activity and renewable diesel has become more popular.
Agricultural co-operatives have been active buyers of ultra-low sulfur diesel in the Chicago area spot market in recent weeks as they prepare for the harvest season, market participants said.
In 2019–23, U.S. consumption of distillate fuel oil has increased by an average of 4% between September and October, primarily because of agricultural harvest trends.
With early indications that the 2024 harvest will likely be on or slightly aheadof schedule, the EIA expects distillate demand to generally follow the five-year average this year.
Reporting by Brijesh Patel in Bengaluru and Shariq Khan in New York; Editing by Richard Chang
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
