US distillate stocks are at lowest level since 1982
August 27, 2026
The DOE inventory report had crude oil up 100,000 barrels, gasoline inventories were down 2.54 million barrels, and distillates were down 2.23 million barrels.
Total crude supplies are not 428.910, last year they were 418.292, and the three-year average is 422.140.
Total gasoline supplies are 206.842, last year there were 222.334, and the three-year average is 219.380.
Total distillates are now at 103.391, last year they were 114.242, and the three-year average is 118.417.
Propane supplies were up 2.470, putting total stocks near an all-time high of 109.483. Last year they were 92.972 and the five-year average is 85.145.
Midwest stocks of propane were up 490,000 barrels putting total stocks at 26.644 and last year there were 24.674, and the five-year average is 24.146.
Gulf Coast stocks were up 1.789 million barrels putting total Gulf Coast stocks at 69.608. Last year stocks were 55.478, and the five-year average is 48.140. Propane stocks are very high and most likely getting higher, and that fundamental situation is bearish propane.
The last few days have bought some optimism, and prices have been selling off. Despite diesel prices seeing strong selling, there are concerns.
The following is from John Kemp. US distillate stocks have depleted by 17 million barrels since the war with Iran started compared with an average seasonal drawdown of less than 1 million barrels in the previous ten years. As a result, stocks had fallen to just 103 million barrels on August 21, the lowest for the time of year in records dating back to 1982.
With distillate supplies tight globally there are few major supplies that are able to fill the gap left from Russia. With refining margins hitting record highs levels in diesel, Asian refiners are expected to step up export levels. Reports are that South Korean exports are expected to ramp up gasoil supplies to the global market to capture the elevated crack spreads in the second half of 2026 which could add around 100,000 bpd of additional supplies to the market.
This selloff we are seeing in diesel may be offering the opportunity to fill tanks in preparation for harvest.