Distillate demand in March hit its lowest level for the month in 26 years, the Energy Information Administration’s (EIA) latest Petroleum Supply Monthly report released on Friday May 31 showed. Some commodities serve as a measure of economic health, with diesel and crude oil demand being among them.

Slowing distillate demand could be sign of a weakening economy.

“Diesel consumption typically decreases as the economy slows, indicating future declines in demand for other fuels. Refining margins are already showing signs of weakness in Asia and have fallen from their earlier highs in the US,” Dennis Kissler of BOK Financial Securities said.

…