US refiners may maximize distillate output at expense of petchems

AI Summary

US refiners are likely to prioritize increasing production of distillates such as diesel and jet fuel over petrochemicals, driven by strong premiums for these fuels amid current market conditions. This shift in output focus is occurring in the context of sustained high price differentials and ongoing geopolitical tensions related to the war in Ukraine.

US production of aromatics from refineries could get squeezed as refiners seek to maximize distillate production at a time when diesel and jet fuel are earning significant premiums over gasoline. Spreads are approaching records last seen in 2022, when the war started between Russia and Ukraine. After a respite from that earlier surge, spreads have ...