The U.S. diesel crack spread has increased by 40% since early this month on strong global demand, Reuters reports. The margin boost comes in the wake of falling profits for refiners and a renewed focus on producing gasoline in preparation for the summer driving season. A source tells Reuters Philadelphia Energy Solutions has booked 1.8 million barrels of diesel for export in June, with particularly strong demand coming from India.
It is a turnaround from just a few months ago, when a mild winter drove down demand for diesel, ultimately prompting refiners to cut back on capital spending. The top 10 U.S. independent refiners’ profits fell 74% in the first quarter of 2016.
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