This article is part of Alerts Daily Market News & InsightsPosted on 10/27/2022 8:58:43 AM PDT by absalom01
East Coast fuel markets are facing diesel supply constraints due to market economics and tight inventories.
Poor pipeline shipping economics and historically low diesel inventories are combining to cause shortages in various markets throughout the Southeast. These have been occurring sporadically, with areas like Tennessee seeing particularly acute challenges.
Back in May 2022, diesel prices rose by $1/gal and supply dried up throughout the Southeast. Over the past few weeks, market volatility has begun to echo the challenges seen in April 2022, as we covered in FUELSNews on Oct 11 and Oct 14. Like before, markets are now seeing extremely high prices in the Northeast along with supply outages along the Southeast.
In many areas, actual fuel prices are currently 30-80 cents higher than the posted market average, because supply is tight. Usually the “low rack” posters can sell many loads of fuel before running out of supply; now, they only have one or two loads. That means fuel suppliers have to pull from higher cost options, at a time when low-high spreads are much wider than normal. At times, carriers are having to visit multiple terminals to find supply, which delays deliveries and strains local trucking capacity. <emphasis added>
Because conditions are rapidly devolving and market economics are changing significantly each day, Mansfield is moving to Alert Level 4 to address market volatility. 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.
This article is part of Alerts Daily Market News & Insights
They are trying to destroy the United States.
Without diesel NOTHING moves, gets grown, or manufactured.
See also:
https://market-ticker.org/akcs-www?post=247276
Screams the headline: "Doctors say 'fossil fuel addiction' kills, starves millions!"
They are attempting White Genocide.
See my post #21 this thread, especially the ZeroHedge article, which agrees with your post, but mentions Chevron instead of Valero; and which agrees with the predictions of Karl Denninger in the last couple of days.
Yes. Agreeing with this as I am gearing up to go back to driving. The only drivers this small company could get to commit need to leave the country as their VISAs are expiring and no body wants to take the job. So to help out, this 'retired driver will hopefully not die on the road.
Private reply to me if you are serious about wanting the phone number. We haul dry bulk livestock feed and supplements.
Tell him about fractional distillation as you don’t get one without the other.
Fixed it.
They're reporting that they are unable to serve their customers in conventional quantities and time frames, due to higher costs and limited supplies available to them.
What struck me about this is the simple pragmatism. Some political commentators will certainly point out the faults of the green religion and the macroeconomic impacts and causes you note. This is more immediate, and simply reports that the economic damage that was predicted from the Democrat party's policies is currently being visited upon us, and it's about to get significantly worse.
I still don’t get their thinking on this. They essentially say “shortages are occurring because supply is low.” Huh? Is this sound economics in the logistics industry?
AOC is one of the ditziest women on the planet. She gives women a bad name.
Honestly this shortage of diesel makes no sense. Also heating oil shortage. I think Brandon Junta engineered it somehow to “accelerate the transition” and destroy the economy.
How does one spell "GREEN NEW DEAL"?
Nobody in their right mind would invest $Billions$ more when it is the official Environment/Government/Social policy (ESG) to destroy it. They will simply run what operations they have into the ground to make what they can and then close the doors as it gets worthless.
That's why this problem is only going to get worse unless we permanently change tack.
$45 to fill up (3/4 tank) my little VW Golf, yesterday. She has to have premium (91 octane - NO CORN!) as she’s 21 years old and I baby her because she only has 55K miles on her.
Beau has a F350 diesel truck. His last fill-up a week ago was $400.00. He’s home from all of his running around with Bear Season, so that expense will be less for now, but he also uses that truck to sometimes plow us out, or others, if the skid steer isn’t working well. And the skid steer is also diesel.
It’s going to be a long, cold, dark winter. Even with the coming Red Tsunami, things won’t be turned around quickly, by any measure. Ugh!
“AOC is one of the ditziest women on the planet. She gives women a bad name.”
She ALWAYS got my drink order WRONG and never refilled the tortilla chips and salsa bowl, either!
(How I WISH she was still making Margaritas in some NYC BAR and NOT a member of CONGRESS! Good Lord! Can we fall any farther as a Nation? Ugh!
The Russian revolution of March, 1917, didn’t start in the army and wasn’t (directly) caused by the war. It started because there weren’t enough functioning locomotives to ship war materiel to the front _and_ keep Petrograd supplied with food. It started with Petrograd housewives who went to their local bakery to buy bread and found that there was no bread because there was no flour because the trains weren’t running to ship it to the city.
Posting this again, for anyone who needs it: https://www.driveonwood.com/
This site has information that will allow you to run vehicles and/or generators using things like wood, charcoal, and other home-grown burnables. I recommend at least looking over some of the plans, so you know your options in case diesel and gas become hard to get.
I bet she wouldn’t know how to make a good rum and Coke! 🤣
If I recall correctly, it’s also possible to produce diesel using plastics pyrolysis.
They way I read that is this:
Shortages (in our ability to service you, our customer) are occurring because our vendors (refineries and oil companies) are telling us that they can’t fill our orders because they don’t have the product on hand. That is the “low supply” they are referencing.
They’re just reporting a fulfillment problem, not commenting on the causal factors for their vendors not being able to fill their fuel orders.
Thanks for the clarification. That makes a lot of sense.
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