Concerns, KeystoneXL Pipeline Couldve Weakened OPEC's Bargaining Position, Guyanas Offshore Drilling Bonanza Is Just Getting Started. While prices are skyrocketing in the Northeast, diesel outages are concentrated in the Southeast. Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading. U.S. distillate fuel oil inventories stood at 105 million barrels last week, the lowest for the time of year since 2008. Not that refiners arent tryingrefinery utilization on the East Coast was at 102.5% in the week to October 21, per EIA, Our forecast for heating oil margins this winter reflects price pressures that have currently been affecting the U.S. distillate market, including low inventories, low imports, and limited refining capacity, the EIA, East Coast fuel markets are facing diesel supply constraints due to market economics and tight inventories, Mansfield. Heres what White House spokesman John Kirby had to say when asked about it: Ill take the question on the diesel, because I just dont have the data on that in front me. A diesel shortage and high diesel prices dont bode well for the global economy, which is slowing down and could tip into recession at some point next year. Prev 1 2 3 Next RCF Life of the Party Oct 28, 2022 #21 nwbobber said: I am. U.S. refiners permanently shut down some refinery capacity at the start of the pandemic when fuel demand plunged. Foreign countries have been affected by it already and I suppose that's where most of this talk has originated. Without the Biden Administrations anti-energy policies, America could have weathered the coming diesel shortage storm. Another big factor of this shortage is due to fewer drivers working for fuel haulers and transporting diesel across states and counties. THE SHORTAGE IS SPREADING TO THE SOUTHEAST. The Biden Administration did not directly cause the coming diesel shortage, but it has done everything in its power to make America very susceptible to any global supply disruption. Mansfield Energy identified the most acute shortages to be in these seven states: These seven states have been given an Alert Level 4 by the fuel supply company "to address market volatility," while the entire Southeast was moved to Code Red, which requires a 72-hour notice for fuel deliveries when possible "to ensure fuel and freight can be secured at economical levels.". A major fuel delivery provider issued a "supply alert," warning . The official supply alert issued by Mansfield Energy states "Poor pipeline shipping economics and historically low diesel inventories are combining to cause shortages in various markets throughout the Southeast." In turn, Commissioner Black says we're seeing a rise in diesel fuel prices. Due to increased demand and a drop in production, a diesel shortage may be looming as the largest diesel distribution hub in the U.S. is sitting on . Diesel prices are currently averaging nearly $5.32 per gallon nationwide, down 8.6% from the all-time high set in June, according to the AAA auto club. A diesel shortage and high diesel prices dont bode well for the global economy, which could tip into recession at some point next year. The c. Mansfield is also moving the Southeast to Code Red, requesting 72 hour notice for deliveries when possible to ensure fuel and freight can be secured at economical levels, the supplier said. The supply crunch is particularly severe in the East Coast, according to analysts who previously talked to Newsweek. Diesel fuel shortage coming to South Carolina and Georgia, Manfield Energy says, Savannah Police arrest suspect following shooting in downtown Savannah, Body found after mobile home fire in Effingham County, 75-year-old woman drove 112 mph until being stopped with spike strips, deputies say, South Carolina sees increase in flu cases, Savannah city manager appoints new fire chief, Family, district attorney react to murder acquittal by directed verdict. The Biden Administration hasnt ruled out the idea of limiting U.S. fuel exports in order to restore inventories and lower prices. Reflecting the intensifying fuel shortage, futures prices for ultra-low sulphur diesel (ULSD) delivered in New York Harbor in December are trading at a premium of $60 per barrel over Brent. We're on the hunt for the mythical scientific arti-"facts" twitter.com/i/web/status/1, Manchin said Biden was being cavalier and divorced from reality after vowing to shutter coal-fired power plants twitter.com/i/web/status/1, Can you believe it? Start Trading CFDs Over 2,200 Different Instruments, Goldman Sachs Downgrades Shell For Above-Average Valuation, The Federal Reserve's increasingly hawkish. Mansfield Energy, a major fuel supply and logistics company based in Georgia and operating in every U.S. state, wrote in a recent news release that the "East Coast fuel markets are facing diesel supply constraints due to market economics and tight inventories.". The possibility of a diesel fuel shortage is being monitored as diesel fuel prices across the country and in Maryland continue to surpass all-time highs. The US has only a 25 day supply of diesel fuel. An expert on natural resource and energy policies says the American economy could be in for more pain as a diesel fuel shortage seems imminent. U.S. refiners permanently shut down some refinery capacity at the start of the pandemic when fuel demand plunged, while others closed facilities to convert them into biofuel refineries. It takes longer to refuel with diesel because it has less energy content per gallon. A severe shortage in diesel could mean an eventual severe shortage in groceries and other goods (or a severe increase in the price of everything else). Merchant of Record: A Media Solutions trading as Oilprice.com. Diesel prices are up more than $5 per gallon nationwide according to Forbes. Oil production cut: Are the US and Saudi Arabia on a damaging collision course? Diesel Shortage. Trading and investing carries a high risk of losing money rapidly due to leverage. As you will see below, we are being warned that there will be shortages of diesel fuel, diesel exhaust fluid and diesel engine oil. European Parliament Members, Cristian Terhes et al, push back against Totalitarian Digital ID and Carbon Tyranny in Europe. Yet something else is happening this year that has not happened before. 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. Inflation is Going to Get Worse. Due to the shortage of diesel fuels, prices for products and other goods will increase on the consumer side. It will become increasingly difficult to try and pivot to newer energy sources, but there will certainly come a time in the future when such discussions will need to happen. Regardless of preconceived notions, the reality remains that diesel fuel will only become increasingly difficult to replace as we continue to figure out how to best combat this growing problem. And ahead of the winter, the distillate fuel crunch is worsening. But I don't expect it to be anywhere near to the Colonial Pipeline outage in 2021. Washington, DC 20006 After all, these are the times that require scientists, engineers, and other scientific or creative professionals to test out newer energy sources. Mansfield Energy issued the alert Friday stating there was a developing diesel fuel. Reuters A customer uses a gas pump at a filling station in Falls Church, Virginia, U.S., October 20, 2022. Outside the East Coast, markets could face some challenges, but most of the biggest issues will be concentrated eastward.". Individuals should consider whether they can afford the risks associated to trading. He says the war between Russia and Ukraine has undoubtedly contributed to the shortage- as well as issues here in the United States. Commissioner Black did add that local company, Colonial Oil, a major supplier of oil in the State of Georgia, is operating all of their refineries. Introduction: The Current Situation of the Shortage. If you think store shelves are empty now? Per a Bloomberg report, fuel supplier Mansfield Energy wrote in a note to its clients that "conditions are rapidly devolving" and "At . With fewer drivers available, theres an increased demand in the trucking industry that delivery cant meet. There's a diesel shortage coming in 2022 yet most people have no idea how big the diesel price hike will be or how it'll affect us all, trucker or not. One day, diesel will likely be rationed even further, so the window of opportunity can get narrow at different times throughout 2022 and beyond. "Poor pipeline shipping economics and historically low diesel inventories are combining to cause shortages in various markets throughout the Southeast," according to the alert. If theres no diesel, theres no fuel for the trucks that bring everything we take for granted to stores and our homes. Diesel runs this country, trucks are not able to get fuel which means our economy could be on the br. East Coast fuel markets are facing diesel supply constraints due to market economics and tight inventories, Mansfield said last week. In this photo, a plume of chemical smoke rises above residential buildings from the Delaware City Refinery April 11, 2022 in New Castle, Delaware. 1. Refiners are opposed to that idea, saying that Banning or limiting the export of refined products would likely decrease inventory levels, reduce domestic refining capacity, put upward pressure on consumer fuel prices, and alienate U.S. allies during a time of war., Tom Kloza, Global Head of Energy Analysis at OPIS, told USA Today last week, Between now and the end of November, if we dont build inventories, the wolf will be at the door., And it will look like a big ugly wolf if its a cold winter., How Record U.S. Gas Exports Could Fuel The Energy Transition, Collapse Of Asias Largest Aluminum Producer Leaves Massive Hole In Market, Four Reasons Why The U.S. Is Grappling With A Diesel Shortage, Saudi Arabia Reiterates Commitment To China, Regardless Of U.S. The best any of us can do is prepare by having discussions on how else we can solve this problem. Gasoline Release Date: October 31, 2022 Next Release Date: November 7, 2022. That's because right now, the U.S. is experiencing one of the biggest shortages of diesel since 2008. The United States relies on diesel for much of its transportation needs. If you buy fuel by the truckload and receive it in a storage tank, then work with your fuel supplier to understand how current volatility affects you. Our forecast for heating oil margins this winter reflects price pressures that have currently been affecting the U.S. distillate market, including low inventories, low imports, and limited refining capacity, the EIA said. The Energy Information Administration. Were down about 11 or so refineries in America since COVID. A lot of 'bending' is going on behind the scenes, there are significant challenges, primarily in the Northeast. That's an increase of $1.67 per gallon, compared to this time last year. The Oil Price Collapse Conspiracy" by Alex Kimani, "Forget Oil, The Real Crisis Is Diesel Inventories: The US Has Just 25 Days Left" by Zero Hedge - 5 Stars *****. But several factors have combined this year to deplete U.S. distillate inventories, which include diesel and heating oil. Diesel inventory on the east coast is 18 million (About 3 days demand) as of today, we will run down to sub 10 million. And some trucking companies appear spooked. Multi-year low inventories and constraints in supply are exacerbating a diesel shortage in the United States, especially on the East Coast. November 1, 2022, 6:32 PM. The diesel shortage has been building since the start of the pandemic, . Diesel shortages coming are not something to joke about. According to CNBC, U.S. diesel reserves at the end of October have never been so low since 1951, with the Northeast most exposed to low levels of diesel stocks. Yet, distillate inventories are much lower than normal, and diesel and heating oil prices remain high and stoke inflation as they make consumer goods and heating bills more expensive. according to analysts who previously talked to. This article was originally published in the Fairfax County Times. Some of the less efficient ones were casualties of COVID. And Im not sure what Kirby is referring to by prices are going down. Diesel prices are up more than $5 per gallon nationwide according to Forbes. The world is also scrambling for diesel supply also in view of the looming EU embargo on Russian fuel imports by sea, expected to kick in in early February. We have doubled our commitment, the commitment he made in March, for natural gas exports to Europe.. Now, as winter approaches, it is said wood is the new gold in Europe because it is so valuable for home heating with the gas shortages. Let us hope that a way can be found to keep all of our trains and all of our trucks running. Currently, there are only 25 days of supply left, and that number is dropping fast. DEF (Diesel Exhaust Fluid) is the additive that must be placed in all newer diesel vehicles in order to reduce the air pollution created by the engine. "Europes Energy Crisis Has Ended Its Era Of Abundance" by Irina Slav, "Dodgy Demand Data? A global shortage in diesel fuel, temporary or longer-term, is therefore a catastrophic event. READ ON THE FOX BUSINESS APP "The national average price for diesel today is $5.30 per gallon and is expected to go up 15 to 20 cents in the next few weeks," Lipow said. Whether you have diesel or not, its time to prepare for the continuing shortages that are coming to the U.S. and throughout most parts of the world. By comparison, the average gasoline price has dropped 25% from its record high to $3.76 per gallon. Diesel prices are up 47% from a year ago. Bareerah Zafar Nov 2, 2022 As if the past few years haven't presented us with enough problems, there have been reports of diesel shortages, which can lead to higher prices in the coming months. READ MORE: Russia sanctions behind EU diesel . ", Join half a million readers enjoying Newsweek's free newsletters. For diesel, one fuel supplier has already issued an alert for the East Coast. Preparing ahead of time for any amount of diesel shortage is the goal in 2022 and beyond. The area. Gasoline and Diesel Fuel Update. The East Coast of the U.S. is reporting its lowest seasonal diesel inventory on record. The cause of the shortage, Black says, doesnt boil down to just one thing. I have noticed a lot of chat online + vids up talking about a diesel engine oil shortage coming because the additives from chevron + lubrisol are currently not producing + have not been for a while now + will not until 2023 sometime so by early sept. at the latest we will see this happen 1st slowly then get really bad by about nov. with around 10% of trucks dropping off the road each week due . October 21st, 2022, 9:21 AM PDT. By Charles Kennedy - Oct 26, 2022, 2:00 AM CDT A shortage of diesel fuel is spreading across the United States, with one company launching an emergency delivery protocol, requesting a 72-hour. Whats worse, is that the Biden Administration doesnt seem to have any plan for fixing it. Updated: 7:35 PM EDT November 2, 2022.
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