U.S. refineries are increasing their production of diesel and jet fuel at the expense of gasoline as global fuel shortages make middle distillates more profitable.

Data from the U.S. Energy Information Administration (EIA) show that gasoline accounted for less than 45 per cent of refinery output on average during the first eight months of 2026. This was below the industry’s previous five-year low in every month within the period.

The development marks a departure from the traditional refining pattern, where U.S. refineries typically obtain between 45 and 50 barrels of gasoline from every 100 barrels of crude oil processed.

Meanwhile, diesel and jet fuel production have gained a larger share of refinery output. Distillate fuel yields, which include diesel and heating oil, remained above their five-year average in every month through August.

Jet fuel production also recorded notable growth, with its share of total U.S. refinery output exceeding 12 per cent in March for the first time on record. It maintained that level through August.

The shift is largely linked to supply disruptions caused by geopolitical tensions. The Iran war has affected refining operations in the Middle East, while Ukrainian attacks on Russian refineries have further constrained supplies of diesel and other petroleum products.

According to the EIA, global refinery crude processing fell by 4.8 million barrels per day in the second quarter. Although output recovered by 1.8 million barrels per day in the third quarter, it remained about five per cent below the level recorded a year earlier.

In contrast, U.S. refiners increased crude processing by 500,000 barrels per day in both the second and third quarters, helping to offset supply losses elsewhere.

With diesel prices reaching record nominal levels in September, refiners are increasingly prioritising products offering higher returns, reshaping the country’s refining priorities to meet growing global demand for diesel and jet fuel.