Is There A Diesel Fuel Shortage?
Is there a diesel fuel shortage 2022-2203?. Up until the economy weakens, there will likely be a U.S. diesel scarcity.
If the economy and fuel consumption don’t slow down, U.S. diesel supplies will likely run out and prices will rise within the next six months.
Since the beginning of the year, when stockpiles were 15 million barrels (-11% or -1.18 standard deviations) below the ten-year average, the deficit has been continuously becoming worse.
On the basis of the most recent information available from the more thorough monthly surveys conducted by the EIA, stocks had already decreased to 113 million barrels by the end of July, the lowest level seen since 1996 and before that, 1954.
However, in terms of consumption, stockpiles were just 30 days’ worth of demand at the end of July, the lowest seasonal level in monthly records dating back to 1945.
Since then, the inventory situation has become even more precarious; in October, stockpiles are thought to have reached a record seasonal low of fewer
Why Is There A Shortage Of Diesel?
Demand for distillate increases throughout this season. However, it repeats this every year.
Additionally, refineries are performing maintenance now. They frequently engage in that behavior in the spring and fall, when demand is lower and the climate is favorable. As a result, refinery capacity decreases throughout this season.
Third, as a result of the closure of a number of unproductive refineries, the capacity of American refineries has decreased recently. So, that’s a brand-new element that has emerged in the last few years.
However, the suspension of imports from Russia is the main cause. The United States was importing close to 700,000 barrels of oil and petroleum products per day (BPD) before Russia invaded Ukraine. nearly all of those
Should we be worried about the Diesel Shortage?
On Monday, a significant U.S. supplier of diesel fuel issued a warning about an oil “shortage” on the East Coast and stated that it would lead to an increase in the short-term price of a number of consumer goods.
However, even though gasoline and diesel fuel inventories are lower than they have historically been, energy market experts say there is no need to panic because the United States won’t run out of diesel fuel.
There were numerous stories on Tuesday claiming that there is just a 25-day supply of fuel left in the United States. a Fox News personality, tweeted last week that “this country is about to run out of diesel fuel.”