How the diesel shortage is being felt globally
NPR's Michel Martin talks with Bloomberg reporter Chunzi Xu about the state of gas and diesel prices across the country.
www.npr.org
"right now, the U.S. is experiencing one of the biggest shortages of diesel since 2008. Currently, there are only 25 days of supply left, and that number is dropping fast. And this matters even if you don't use diesel yourself, because it's an essential part of the supply chain. And as temperatures begin to drop, thousands of households across the country will be using it as their primary source of heat."
Why The U.S. Has A Diesel Shortage
Distillate inventories are at historic lows headed into the high-demand season. That's bad news. I explain why it's happening.
www.forbes.com
"Last week, the Energy Information Administration (EIA) reported that distillate inventories were at their lowest levels since 2008. (The primary distillates are diesel, jet fuel ,and heating oil)."
However, in 2008 distillate levels were low coming out of spring. Currently, they are low going into fall. That’s far worse than the situation in 2008."
The U.S. Diesel Shortage Is Worsening | OilPrice.com
America’s diesel shortage is worsening as distillate inventories crash to multi-year lows
oilprice.com
"Tom Kloza, Global Head of Energy Analysis at OPIS, told USA Today last week, “Between now and the end of November, if we don’t build inventories, the wolf will be at the door.”
“And it will look like a big ugly wolf if it’s a cold winter.”
The diesel market is in a perfect storm as prices surge, supply dwindles ahead of winter
Diesel prices are surging with supply at a level not seen since the 1950s and a ban on Russian refined products will lead to greater competition for the fuel.
"Reserves for diesel this time of year have not been this low since 1951, with the greatest shortfall in the Northeast region including New York and New England."
"For regions including New England, competition with Europe for diesel supplies will intensify next year when an EU ban on Russian refined product purchases is implemented, Lipow said. Diesel exports are of particular interest with the date of February 5, 2023, when the EU sanctions on Russian refined oil products begin, said BIMCO’s chief shipping analyst Niels Rasmussen, adding that 90% of the EU’s import volumes are diesel.
“The EU must replace on average 2 million tons of diesel imports from Russia,” Rasmussen said. “In addition, the International Energy Agency has estimated that the EU’s demand for refined products will increase by 300,000-500,000 barrels per day during winter to meet heating demands.”
