The United States has been staring at a diesel shortage for several months now. But it’s getting worse as prices rise and the supplies continue to dwindle.
According to a report by WFLA a CNBC affiliate in Tampa, Florida, the U.S. has only 25 days worth of diesel. The price of diesel has been soaring for months making the cost to get goods to the public soar in return. The ruling class has already warned its slaves to expect to pay more as the price to transport goods, travel, and get to work becomes more expensive.
According to oilprice.com, diesel stockpiles have reached their lowest level since 2008. The U.S. Energy Information Administration said for the week ending October 14, its data show the United States has just 25 days of supply of distillate fuel in storage.
Per a Bloomberg report, fuel supplier Mansfield Energy wrote in a note to its clients that “conditions are rapidly devolving” and “At times, carriers are having to visit multiple terminals to find supply, which delays deliveries and strains local trucking capacity.” Bloomberg further reported that the Colonial Pipeline has been fully booked to carry diesel fuel and other distillates to the East Coast, which should ease the supply pressure but it will take a while, with the first deliveries expected in early November.
“Refining constraints can create a sharp wedge between where crude and product markets clear, making policy management of crude supply less effective at controlling consumer prices,” Goldman Sachs analysts wrote in a note. Meanwhile, the scarcity of diesel has prompted traders to start diverting cargoes with the fuel that was originally bound for Europe, Reuters reported earlier this month.
Tanker tracking data showed that at least two tankers with some 90,000 tons of diesel and jet fuel that were initially bound for Europe were diverted toward the U.S. East Coast.