Middle distillates are petroleum products with boiling points between gasoline and heavy fuel oil, including diesel fuel, heating oil, jet fuel, and kerosene. These products represent a significant portion of refinery output and serve essential transportation, heating, and industrial applications. Middle distillate markets are closely watched indicators of economic activity and energy demand.

Middle distillate pricing is influenced by seasonal demand patterns, economic activity levels, refinery capacity, and crude oil costs. Winter heating demand and summer driving seasons create predictable seasonal patterns, while economic growth affects diesel demand for transportation and industrial use. Understanding middle distillate fundamentals helps assess refining margins and energy market dynamics.

Real-world example: Strong trucking activity and cold weather forecasts cause middle distillate crack spreads to widen from $20 to $30 per barrel as diesel and heating oil demand increases relative to crude oil supply.