Slide 12 of 14
Notes:
Preliminary data indicate that at the end of July, U.S. crude oil inventories dropped to the lowest level at that time of year since 1976. The latest fall in inventories has called attention to where the increased OPEC oil is going (the last 2 increases in quotas shown earlier). With crude oil inventories this low, there is little room for flexibility in the refining system.
Additionally, the quality of crude oil may become increasingly important as the product slate, not only in the US, but worldwide, changes. Both the U.S. and Europe are going to “cleaner” gasoline and diesel fuels, while gasoline may take a larger share of the developing world’s product slate as they improve their transportation infrastructure.
