by Mish Shedlock, Mish Talk:
Diesel inventories are “unacceptably low” and “all options are on the table” to build supplies and reduce retail prices says the economic council director.
Bloomberg reports Diesel Supply of Just 25 Days Poses Problem for Biden
Key Points
- The US is has just 25 days of diesel supply, the lowest since 2008, according to the Energy Information Administration.
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- The four-week rolling average of distillates supplied, a proxy for demand, rose to its highest seasonal level since 2007.
- National Economic Council Director Brian Deese told Bloomberg TV Wednesday that that diesel inventories are “unacceptably low” and “all options are on the table” to build supplies and reduce retail prices.
- In New England, where more people burn fuel for heating than anywhere else in the country, stockpiles are less than a third of typical levels for this time of year.
- At least two vessels carrying around 1 million barrels of diesel are due to arrive in New York after being diverted from their original destinations in Europe.
That last bullet point is interesting. Did we call back exports headed for Europe?
Craig Fuller Chimes In
“Diesel is the number two cost for US trucking companies outside of labor. This is horrible news heading into one of the worst freight markets in years.”
Price of Trucks Dropping Fast
Long Term Diesel Price
EIA price data, US average price, chart by Mish
Diesel Price Since 2020
EIA price data, US average price, chart by Mish
