US distillate fuel oil inventories, which primarily include diesel and heating oil, fell by 2.2 million barrels, or 2.1%, to 103.4 million barrels in the week ended Aug. 21, the lowest level ever recorded for that time of year in Energy Information Administration data dating to August 1982. Stocks were 14% below the five-year seasonal average and 9.5% below the 114.2 million barrels recorded in the corresponding week last year. The decline came even as US refineries operated at 97.4% of capacity, with distillate production averaging about 5.1 million barrels per day. Exports increased to 1.79 million barrels per day, while imports rose to 176,000 barrels per day. Demand, measured by product supplied, averaged 3.8 million barrels per day over the latest four-week period, down 2.2% from a year earlier. Seasonal harvest and heating demand could further tighten the market. The average US retail price for on-highway diesel rose 19.8 cents week over week to $5.652 per gallon as of Aug. 24, while New York Harbor ultra-low-sulfur diesel reached $4.473 per gallon on Aug. 21.