U.S. petroleum inventories forecast decline due to refinery closures

U.S.-based Energy Information Administration (EIA) has projected that in 2026, inventories of the three largest transportation fuels—motor gasoline, distillate fuel oil, and jet fuel—will fall to their lowest levels since 2000. Two pending refinery closures are expected to reduce U.S. production of refined petroleum products while consumption is forecasted to grow. The total inventories for these fuels are expected to end next year at 375 million barrels, decreasing significantly from historical averages. Additionally, U.S. consumption of jet fuel is anticipated to rise to an all-time high, exacerbating supply issues in the market.