The World Is Running Short on DIESEL

On the PBD Podcast, the Home Team discusses extreme pressure in the global diesel market and whether record U.S. prices could climb further. AAA puts the national diesel average at a record $6.4476 per gallon on September 18, up nearly $1 in just one month. U.S. distillate inventories stood at 107.9 million barrels for the week ending September 11, roughly 13% below the five-year average. Stocks increased by about 1.6 million barrels that week, however, so the latest data do not show inventories continuously falling. The pressure is global. Reuters reports refinery disruptions from conflicts in the Middle East and Ukraine have reduced diesel supply, while Russia has restricted fuel exports after attacks forced several major refineries to reduce or halt production.
Diesel’s importance extends well beyond drivers. Trucks, agriculture, construction and freight networks depend heavily on the fuel, making sustained shortages particularly consequential for supply chains. Reuters says global refining disruptions have already driven diesel to record levels.