US Diesel Demand in April Stronger Than Expected Despite Tariffs

US diesel demand, a closely watched measure of the country’s economic health, was higher in April than early weekly estimates, the Energy Information Administration said in its monthly report.

Distillate fuel oil demand was 3.88 million barrels a day in April, according to the agency’s latest Petroleum Supply Monthly report released Monday. That is 4.7% higher than early estimates published by the agency in its Wednesday weekly report and 2.2% higher than April 2024. April was a volatile month for diesel futures after President Trump announced sweeping tariffs on April 2, causing prices to tank.

Demand for jet fuel was revised down by 5% in the monthly EIA report to 1.76 million barrels a day from estimates of 1.86 millions barrels a day. Those same tariffs also clouded the outlook for air travel, with some Americans opting for road trips over flying as they tighten spending.

Demand for gasoline, the most consumed fuel in the US, was in-line with weekly estimates published earlier this year.

Total US liquids production eked out a record-high of 20.83 million barrels a day in April, up roughly 50,000 barrels from the previous month, the report said. The number, which includes crude oil and natural gas liquids, came in roughly 340,000 barrels higher than a previous estimate for the month of April.