U.S. refiners are enjoying their strongest diesel margins in months as surprisingly robust overseas demand, combined with lower domestic production has triggered an unusually large drawdown in inventories for this time of year. The surge in appetite for U.S. diesel comes on the heels of a mild winter that sapped demand for heating oil and punished margins as products went straight into bulging storage tanks. U.S. independent refiner profits dropped 74 percent in the first quarter compared with last year. The strong demand for diesel comes at an odd time for U.S. refiners, who have shifted their production focus on gasoline ahead of the busy summer driving season that kicks off with the upcoming Memorial Day holiday weekend. Notably, the U.S. diesel crack spread 1HOc1-CLc1, a measure of how much refiners profit from […]