These low distillate inventories are why diesel prices are above $5.00 a gallon nationwide, even though the nationwide average price for gasoline has dropped below $4.00 a gallon. Gasoline Prices Could Return To $5 Per Gallon, U.S. What does backwardation have to do with it? XU: Diesel is the fuel of the economy, and it's in just about everything that we use. Some cities might run dry on diesel for a few days, at least at the terminal level. One of the predicted outcomes is that many owner-operator drivers will lease their services to a fleet or give up the self-employment lifestyle in favor of working for a company instead. So that's where we are today going.
Privacy Policy. The Saudis are buying up Russian diesel and selling more of the stuff they produce themselves. 74-89% of retail investor accounts lose money. Currently, they are low going into fall. Consumers globally have been grappling with shortages of daily-use goods. Direct, Streamlined, And Efficient Service With Prompt Payment Made A Priority. Since then, the inventory position has tightened even further, with stocks estimated to have fallen to a record seasonal low of fewer than 27 days of demand in October. natural gas prices globally. Some countries are in worse shape than the U.S. with respect to fuel supplies, and they are willing to pay more to obtain them. All of the work on this wallets. according to analysts who previously talked to. And supplies are going to tighten further over the next few months because Europe is going to pivot away from Russian fuel more so than they have done with their embargo coming in the next few months. You may opt-out by. But Patrick De Haan, GasBuddy's head of petroleum analysis, told Newsweek he would be more cautious before saying outages are incoming. Russias invasion of Ukraine has led to a spike in energy prices, which is reflected in high gas and diesel prices. A diesel gas shortage impacts many companies since the fuel is needed to transport goods across the country.
South Florida gas shortages: Where is there gas near me, Miami Officials are now considering steps like export restrictions that would be unprecedented -- and that critics say could well backfire. Even as the U.S. grapples with one of the worst diesel shortages on record, U.S. companies are exporting more than a million barrels of distillates a day. 10/24/22 1:15 PM EDT, Article For example, they could release 1 million barrels of fuel of gasoline and diesel each from emergency reserves in the northeast. Visit our website terms of use and permissions pages at www.npr.org for further information. Diesel inventories in the U.S. have not been so low since 2008, with the Energy Information Administration (EIA) reporting that, as of October 14, the country had 25.4 days left of distillate supplieswhich include diesel, jet fuel and heating oil. This would provide a much-needed cushion of supply in the most vulnerable regions and forestall shortages. The demand has been high and supply has been weak. While data from the Energy Information Administration shows that the U.S. has about a 25-day supply of diesel, the country will not actually run out of fuel soon, experts confirmed to The Associated Press. In the days since the original October 28 monologue, there has been a wave of right-wing TV news reporting on the idea that either the U.S. will run out of diesel before Thanksgiving, or that there is a looming diesel shortage that is the sole fault of the Biden administration. Can The Oil And Gas Sectors Deliver On Their Decarbonization Promises? Also, while higher gas prices have an impact on inflation, diesel is a bigger driver. And why is that? So, thats a new factor that has appeared in the past couple of years. So let me pivot to gasoline prices now, because, you know, this summer, we saw such an uptick. So Europe needs the energy realized. As mentioned above, distillate demand spikes at this time of year. The US has only a 25 day supply of diesel fuel. On October 28, Fox News host Tucker Carlson spent his entire opening monologue (over 13 minutes) blaming President Joe Biden for high energy prices, promoting fossil fuel usage, and insinuating that the U.S. will run out of diesel fuel by Thanksgiving. And and then, of course, we were all moving quickly, VIX vehicle future that Last week, the Energy Information Administration (EIA) reported that distillate inventories were at their. But the relatively small volume available in these reserves mean the relief won't last for very long. We wont run out of fuel but supply is going to be short and prices will consequently rise.
What 'Backwardation' Has to Do With US Diesel Squeeze And we're seeing shortages up and down the coast. At the same time, US seasonal demand for diesel is at the highest level since 2007. In this photo, a plume of chemical smoke rises above residential buildings from the Delaware City Refinery April 11, 2022 in New Castle, Delaware. MARTIN: So normally, gas prices ease. Is this only happening in the US diesel market? document.write(write_html); This is a key reason that the countrys major fuel pipeline connecting Gulf Coast refiners and East Coast consumers was underused for months while East Coast seasonal diesel stockpiles languished at record lows -- the product can lose a lot of its value in the two to three weeks it takes to move through the pipeline.
Why Is Diesel Being Exported During A Shortage? Debt ceiling fallout puts U.S. credit rating in limbo. We just we need to let prices loose. Refiners in Texas and Louisiana can export diesel out of the Gulf Coast to buyers in Latin America and Europe for an immediate profit -- and they have been doing just that. But the false narrative that Carlson and the right-wing media set in motion is still being circulated on social media by high profile Republicans. Low distillate inventories have sent diesel prices soaring. Now, crude exports to Europe from the United States are the highest theyve been since 2016, with almost 49 million barrels exported in April alone. Theres also potential for drivers to negotiate fuel surcharge pass-throughs. Renault could face prosecution in France over faulty engines as a group of customers plans to lodge a criminal complaint against the carmaker next week, the group's lawyer said on Friday. Fact-checking website Verify specifically debunked Carlsons diesel claims in an article published three days later. MARTIN: Let's just finish where we started, talking about diesel. 06/01/23 10:09 PM EDT, Video & Audio [1/2] Storage tanks for crude oil, gasoline, diesel, and other refined petroleum products are seen at the Kinder Morgan Terminal, viewed from the Phillips 66 Company's Los Angeles Refinery in Carson, California, U.S., March 11, 2022. Oil expert Andy Lipow was quoted, saying, We will not run out of diesel in 25 days unless we simply stopped producing or importing and drew down inventory. See here for a complete list of exchanges and delays. months, we're going to see Europe in the exact same thing. Individuals should consider whether they can afford the risks associated to trading. Substantial diesel volumes come to the Northeast from the Gulf region via the Colonial Pipeline. Related: Maersk Reports Record Profits But Warns Of Challenges Ahead if(window.innerWidth<=1023){var write_html='