(Diesel) Supply Alert – October 25, 2022

Mansfield Energy ^ | October 25, 2022 | Alan Apthorp

[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

[CodeJockey]

Does Raytheon and Boeing know?

[KeyLargo]

https://www.newsweek.com/how-diesel-shortage-could-cripple-us-economy-1755100

[ding_dong_daddy_from_dumas]

So we don’t know if we are going to have diesel? “Don’t have the product on hand” might be temporary or it might mean “we don’t know when we can meet the demand.”

[shadowlands1960]

Rice and beans

[cableguymn]

Unless we get 60 reliable votes in the Senate the only thing we can hope to get from a Republican house/Senate is a stalemate with Biden.

[Diana in Wisconsin]

Two years of Government Gridlock would NOT be a bad thing. At least it would slow the bleeding...which is about the only thing the current crop of Republican Congress Critters are good for.

Except for my Senator Ron Johnson, and a handful of others. :)

[ding_dong_daddy_from_dumas]

It takes 2/3 of both houses of congress to override a veto.

[A Formerly Proud Canadian]

Panama!

[blam]

US Diesel Shortage Increasingly Likely Until Economy Slows

[absalom01]

Amazing that Newspeak is covering this. From your link:

“It’s not a thing that gets the same attention from the public as gas does. Most people don’t use diesel and they don’t see the relevancy, but it is something that infiltrates every nook and cranny of inflation because everything moves around the country in the waterways, on the rails or on the roads, with diesel powering it,” said Kloza.

Diesel is used in farming, construction, heating and transportation, with trains, trucks and ships all running on it.

“The economy runs on diesel,” said Cinquegrana. “Think about everything you buy in the store, it got there by trains and trucks. Construction, etc. High diesel prices could slow economic activity down. Prices have come down from the all-time highs in mid-June, but not enough to ease concerns.”