Daily News for Every Age

Diesel on the verge of running out in United States


Diesel and heating oil stocks in the United States are at an all-time low for this time of year. Diesel futures in northwest Europe are about $40 per barrel higher than Brent, compared to a five-year seasonal average of just $12.
Diesel in the New York harbour spot market, a key benchmark, is up roughly 50% this year. Europe, the United States, and the United Kingdom are all facing significant constraints in their ability to refine crude oil into fuels such as diesel and gasoline.
The European Union is preparing to shift away from Russian supply, which could exacerbate Europe’s problem.
Suppliers on the United States’ East Coast are rationing and implementing emergency plans in preparation for winter.
Diesel prices in the United States are likely to rise as a result of European sanctions against Russia, particularly on the East Coast. The region is heavily reliant on the Colonial pipeline, which is frequently at capacity. Inventories in the northwest are expected to fall to 211.9 million barrels in March, the month after EU sanctions take effect.
Low Rhine levels have hampered deliveries and reduced output, while refineries in neighbouring Hungary and Austria have also been severely impacted. Poor countries that can’t afford skyrocketing prices are suffering, and Vietnam and Thailand are looking to increase supply.

Follow us on