Management of refining giant Valero Energy Corp. painted a bullish picture for oil products demand on Thursday, citing low inventories and surging global natural gas prices among factors boosting healthy crack spreads for U.S. refineries.

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“Refining margins were supported by strong recovery in product demand coupled with product inventories falling to low levels during the third quarter,” CEO Joe Gorder told analysts during a conference call to discuss financial results for the period. “In fact, total U.S. light product inventories are now at five-year lows and total light product demand is over 95% of the 2019 level.

“Across our system current gasoline sales are at 95% of the 2019 level and diesel sales are 10% higher than in 2019.”

Valero operates 15 refineries in...