The Weekly Fill-Up | November 9-13

November 9, 2026

November is bringing a new set of developments to the energy industry, and some of the most important changes are happening behind the scenes at refineries.

New federal data shows that U.S. refiners are changing the types of fuel they produce, prioritizing diesel and jet fuel over gasoline. At the same time, domestic diesel demand is increasing, global refining operations remain disrupted, and propane consumption is beginning to accelerate.

For Sioux Valley Coop members, these developments help explain why different fuel products can experience very different market conditions, even when they originate from the same barrel of crude oil.

Refineries Are Producing Less Gasoline to Make More Diesel

One of the most interesting developments this week came from the U.S. Energy Information Administration on November 5.

According to the agency, American refineries have been adjusting their production to favor middle distillates, primarily diesel and jet fuel, rather than gasoline.

The shift is significant.

Historically, gasoline accounts for approximately 45% to 50% of the petroleum products produced from each barrel of crude oil processed by U.S. refineries.

However, from January through August 2026, gasoline yields averaged less than 45%, falling below their five-year historical range.

Meanwhile, distillate fuel yields remained above their five-year average during every month of that period.

Why would refineries produce less gasoline?

The answer comes down to profitability and demand.

Diesel and jet fuel have been commanding unusually high refining margins because of limited international supplies. Refiners have responded by adjusting operations to produce more of the fuels that are in greatest demand.

For agricultural producers, this is an important development because it demonstrates how the energy industry is responding to tight diesel markets.

Refineries are already taking steps to increase diesel production, but those changes have not completely eliminated supply pressure.

It also helps explain why gasoline and diesel prices don’t always move together. Even though both products come from crude oil, the amount of each fuel being produced and the demand for those products can create different pricing conditions.

Diesel Inventories Fall Below 100 Million Barrels

The latest weekly petroleum report shows that diesel supplies remain under pressure despite refiners’ efforts.

According to EIA figures for the week ending October 30, U.S. distillate fuel inventories declined from approximately 102.8 million barrels to 99.3 million barrels.

That’s a decrease of roughly 3.6 million barrels in one week.

National inventories were also approximately 11% below the same period last year.

At the same time, distillate product supplied, a commonly used measure of domestic demand, increased from approximately 4.21 million barrels per day to 4.44 million barrels per day.

The four-week average was approximately 8.7% higher than the comparable period in 2025.

These numbers are particularly notable because they show demand strengthening while inventories are declining.

Although harvest is progressing across much of the Midwest, diesel consumption extends well beyond combines and tractors. Commercial trucking, grain transportation, construction, manufacturing, and other industries continue relying heavily on distillate fuels.

For Sioux Valley Coop’s bulk fuel customers, the latest figures reinforce the importance of understanding how much fuel their operations consume throughout the year, not just during harvest.

The inventory decline does not automatically indicate an immediate shortage. However, it leaves the market with less stored fuel available to absorb unexpected supply disruptions or additional demand.

Global Refining Disruptions Continue Affecting U.S. Markets

Another new EIA report, published November 3, provides additional insight into why diesel markets have remained so challenging.

According to the agency, global crude oil inputs to refineries fell by approximately 4.8 million barrels per day during the second quarter of 2026, a decline of roughly 6%.

Refining activity recovered somewhat during the third quarter, increasing by approximately 1.8 million barrels per day.

However, global refinery inputs still remained about 5% below the same period in 2025.

The disruptions have affected several major refining regions, including the Middle East, Asia, and Russia.

Russia’s refining industry has faced additional pressure from attacks on energy infrastructure, while other countries have experienced challenges obtaining and processing crude oil.

The United States has responded differently.

American refinery inputs increased during both the second and third quarters as domestic refiners worked to supply international markets affected by those disruptions.

This helps explain an important feature of the current diesel market.

Even when U.S. refineries increase production, some of that additional fuel is needed to help replace supplies that are no longer being produced elsewhere.

For local customers, the result is a diesel market that remains closely connected to international refining conditions.

Propane Consumption Increases Sharply

Diesel isn’t the only energy product showing a significant change in demand.

The latest EIA report also shows a substantial increase in propane and propylene supplied to the domestic market.

For the week ending October 30, propane and propylene product supplied increased from approximately 760,000 barrels per day to 1.44 million barrels per day.

That’s a sharp weekly increase, although individual weekly estimates can fluctuate considerably.

At the same time, national propane and propylene inventories declined from approximately 105.7 million barrels to 104.1 million barrels.

Midwest inventories edged lower from approximately 25.2 million barrels to 25.1 million barrels.

These figures suggest that the market is moving further into its seasonal consumption period.

For South Dakota, November brings the potential for overlapping demand from residential heating, agricultural operations, and remaining grain-drying activity.

The important distinction is that a single week’s increase in product supplied doesn’t necessarily establish a long-term trend. Continued inventory reports will help show whether the increase represents a sustained change in consumption.

For Sioux Valley Coop customers, propane contracting and monitored delivery services remain valuable ways to manage seasonal needs.

SVC’s Always Full program uses remote tank monitors to track customer usage and coordinate deliveries, helping maintain reliable service without requiring customers to monitor their own tank levels or request routine fills.

Harvest Makes Significant Progress, But Work Remains

The latest USDA Crop Progress report shows that farmers made substantial progress during the final week of October.

As of November 1, approximately 74% of the nation’s corn crop had been harvested, compared with the five-year average of 77%.

That’s a considerable improvement from the previous week’s 60% completion rate.

Soybean harvest reached approximately 88%, ahead of its five-year average of 84%.

The difference between these crops is relevant to energy demand.

With soybean harvest approaching completion in many areas, some operations may be transitioning away from fieldwork. However, a significant portion of the corn crop remained unharvested nationally at the beginning of November.

Corn harvest can involve additional energy consumption for grain drying, transportation, and storage.

Weather will remain an important factor in determining how quickly the remaining crop is harvested and how much propane is needed for drying.

For local producers, actual field conditions and crop moisture remain more useful indicators of drying requirements than national harvest percentages alone.

What This Means for 2027 Fuel Contracting

The latest diesel market developments also provide important context for customers evaluating next year’s fuel expenses.

With diesel inventories declining and global refining disruptions continuing, the future direction of prices remains uncertain.

That’s one reason fuel contracting can be an important financial planning tool.

Sioux Valley Coop is offering 2027 gasoline and diesel contracts for both retail-site fueling and bulk deliveries.

Customers can choose from several payment and billing arrangements, including 100% prepayment, no-money-down contracting, and consumption billing.

Under consumption billing, customers can be billed based on the fuel they use rather than receiving a large bill based solely on delivered volume.

Standard contract pricing is averaged across March through November, while month-specific arrangements are also available.

Contracts begin March 1, 2027, unless otherwise arranged, and signed contracts are required at the time of commitment.

For agricultural operations, commercial fleets, and other businesses that depend on predictable fuel expenses, evaluating expected annual consumption can help determine which contracting approach best fits their needs.

Contracting doesn’t guarantee the lowest possible market price, but it can provide greater certainty when developing operating budgets.

Preparing Equipment for Winter Operations

As November continues, equipment maintenance is becoming increasingly important for operations transitioning from harvest into winter.

Cold temperatures can affect diesel fuel performance, engine starting, hydraulic systems, and lubricant flow.

For equipment that will remain in service, using manufacturer-approved lubricants with the correct cold-weather viscosity is especially important.

Winterized diesel can also help address seasonal fuel performance concerns, while proper storage and filtration remain essential.

Sioux Valley Coop offers Roadmaster Premium Diesel, winterized premium diesel, and Cenex lubricants to support agricultural and commercial equipment throughout changing weather conditions.

Operations completing harvest can also use this period to review service records, identify upcoming maintenance needs, and determine which bulk oil products will be needed during the winter months.

Taking care of equipment before extended freezing conditions arrive can help reduce interruptions when machinery is needed most.

Looking Ahead: Different Fuels, Different Challenges

This week’s developments highlight an important reality about the energy market: not every fuel is experiencing the same conditions.

Refineries are adjusting production to prioritize diesel and jet fuel, but domestic distillate inventories are still declining. Global refining disruptions continue influencing U.S. supply, even as American refiners increase their output.

Propane, meanwhile, is entering a period of stronger seasonal consumption as heating and agricultural needs overlap.

And with harvest progressing, agricultural energy demand is beginning to shift from field operations toward grain handling, transportation, equipment maintenance, and winter preparation.

For Sioux Valley Coop members, understanding these changes can help provide perspective when evaluating fuel expenses and planning for the months ahead.

As 2026 approaches its final weeks, Sioux Valley Coop remains committed to supplying the fuel, propane, lubricants, and services that keep local homes, farms, and businesses moving.