PADD 2 diesel prices face pressure
US Midwest diesel differentials are set to tighten as harvest demand rises while refinery maintenance constrains regional production. Kpler forecasts PADD 2 diesel deficits of 35 kbd in September and 188 kbd in October, leaving the region increasingly reliant on Gulf Coast supply.
Competition for those barrels will be intense. PADD 3 exports are running near historic highs as Brazil, the Mediterranean and Northwest Europe seek US #
diesel# amid constrained global supply. With waterborne export differentials already above inland markets, PADD 2 prices may need to strengthen considerably to attract barrels north and cover the seasonal short.
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