While most of the market’s attention has been focused on how fast gasoline demand will recover, lower economic and manufacturing activity in all regions of the world has led to an oversupply in distillates, including diesel, gasoil, and jet fuel. Faced with an unprecedented crash in jet fuel demand amid the pandemic, refiners have geared toward making more of the other distillate fuels, whose stocks have risen to levels not seen in decades. The glut in diesel and other middle distillates has become so evident in recent weeks that traders have started to charter tankers to store fuels for sale at a later date. With distillate inventories sitting well above five-year averages and global fuel demand recovery faltering, refiners don’t have much incentive to process increased volumes because the refining margins have tumbled with the glut. “Persistently weak refinery margins provide little incentive to boost crude purchases,” the International […]