Refiners are moving production away from gasoline to capture stronger diesel spreads, a shift that may tighten gasoline supply if it persists.
US diesel refining margins are near record highs, creating an incentive for refiners to favor diesel production over gasoline. That shift reflects how refineries typically respond to stronger product cracks (refining margins tied to fuel prices), directing output toward the most profitable barrels when operationally possible. If sustained, the move could leave gasoline supply tighter ahead, potentially affecting fuel market balances beyond diesel itself.