Thursday, October 27, 2022

Diesel Shortage Update as Prices Skyrocket Over Fears Supply Could Run Out

An acute shortage of diesel fuel in the U.S. is threatening to keep inflation and heating bills high in the country through the winter, as prices are expected to continue surging.

New government data released on Wednesday show that diesel supplies are "unacceptably low," as National Economic Council Director Brian Deese told Bloomberg TV on Wednesday. According to the Energy Information Administration, the U.S. has now 25 days left of diesel supply, its lowest level since 2008.

Deese said that "all options are on the table" to replenish U.S. supplies, which have been drained by the impact the Russian invasion of Ukraine has had on global energy supplies and imports.

 The price of diesel in the U.S. has been surging "due to inventories at very low levels and limited ability to quickly improve supply," Patrick De Haan, GasBuddy's head of petroleum analysis oil and refined products analyst, told Newsweek.

 Imports from Russia have been banned following the Russian invasion of Ukraine on February 24, contributing to the current supply crunch in which refineries' seasonal maintenance also played a big part...MORE

 

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