This article was originally published by Tyler Durden at ZeroHedge.
We noted Tuesday evening, D (for Diesel)-Day quickly approaches, though it might already be here as U.S. East Coast distillate inventories plunge to a record low, according to new government data.
Weekly petroleum data from Energy Information Administration’s (EIA) Crude Oil Inventories show East Coast distillate inventories are at their lowest ever, dropping to just 22.4 million barrels.
Total U.S. distillate inventories have sunk to levels not seen since the last financial crisis.
One of the reasons for the drop is East Coast refinery capacity has plunged over the last decade, “leaving the region vulnerable to squeezes,” according to Bloomberg’s Javier Blas.
In the past 15 years, the number of refineries on the U.S. East coast has halved to just seven. The closures have reduced the region’s oil processing capacity to just 818,000 barrels per day, down from 1.64 million barrels per day in 2009. -Blas
Total U.S. refinery utilization capacity has plunged from 96% in February to 86% at the end of April. Also, the U.S. has halted energy imports from Russia.
There’s also the issue Gulf Coast refiners’ are prioritizing exports to Europe rather than increasing domestic supply, sending the price of diesel to a record high.
Diesel is used in trucks, tractors, freight trains, and power generation. Soaring prices will only exacerbate inflationary pressures.
Blas said: “The diesel shortfall is nearing crisis levels.”
Reality is starting to sink in about the worst inflation in four decades. Truckers have told the Dirty Jobs jobs guy Mike Rowe that it now costs $1,000 to fill up their fuel tanks.
Rowe said truckers aren’t buying the Biden administration’s narrative that Russia is responsible for soaring fuel prices.
With the U.S.’ busy travel season less than a month away and diesel inventories on the East Coast at record lows with refinery capacity in the region struggling, this could only suggest a fuel crisis could be nearing.
This could result in some serious inconveniences for the people living there.
Serious for everyone, commodities inflation also as if you didn’t notice that.
But Russia.. Russia Russia I can’t believe people believe the lies but I’m not surprised the left keeps spewing that same old bs.
Same old “Problem, Reaction, Solution” somehow through wealth redistribution.
Better have F for Food day cause it’s coming.
The potato in chief, the WHO, the UN, and the EU all say the same bloody thing. It’s wise to listen to these vermin, after all they tell you what’s coming next in advance. They call it mocking the constituents after all! See Event 201 with kill gates of hell and Klaus Barby Schnob for a prime example of advance warning.
Mac Slavo & Tyler Durden stay on top of these situations folks. The diesel-story is similar to the-canary-in-the-coal-mine indicator of many shortages to come. This “sit-rep” story helps those of us that prep to anticipate other events coming our way. The normalcy-bias should not rule the roost.
No diesel equals no food, but let’s ship tanker loads of fuel to the Ukraine!