Regional product markets short-term outlook December 2023

This update incorporates all of the regional crude runs and product-by-product supply-demand balances through to end-2025 on a regional level. Gasoline balances have continued to build globally, with inventories sitting near the top of the 5-year range heading into the end of the year. Meanwhile, distillate balances have started to recover after declining over the last several months in an undersupplied market. While we expect stocks to build heading into the end of the year, we continue to see strong demand growth for jet fuel which will continue to pressure diesel yields. Given the current inventory position for diesel, winter heating demand will be key to watch when looking towards 2024 balances to see if markets are in for a repeat of 2023.