After two years of significant growth, U.S. exports of gasoline and diesel to Latin America will remain stable in 2018, near historic highs of over 1.6 million b/d combined. Latin America’s yawning import requirements for both diesel and gasoline will continue to be a boon for Gulf Coast refiners and support regional product spreads. In this context, global diesel fundamentals will tighten as demand growth outpaces production gains, particularly in the Asia-Pacific region. Meanwhile, continued cuts in global residual supply will keep fuel oil markets tight and discounts to crude narrow. An acceleration in global gasoline supply growth from 270,000 b/d last year to 480,000 b/d in 2018 will exert slightly bearish pressure on product markets, partially offsetting the strength of diesel and fuel oil.