Posted on 10/30/2022 3:50:34 PM PDT by FarCenter
A perfect storm is taking place in the diesel market, with dwindling diesel reserves, a drought on the Mississippi River pushing more product to rail and truck, and a possible rail strike leading to a surge in prices that is expected to continue.
Diesel prices have increased by 33% for November deliveries.
“The national average price for diesel today is $5.30 per gallon and is expected to go up 15 to 20 cents in the next few weeks,” said Andy Lipow, president of Lipow Oil Associates, LLC.
Reserves for diesel this time of year have not been this low since 1951, with the greatest shortfall in the Northeast region including New York and New England.
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Traders profit, Russia ban looms
Traders are diverting tankers away from Europe to the U.S. because the price of U.S. diesel is now higher than in Europe so they can make a larger profit. So far, two tankers have arrived and unloaded.
According to MarineTraffic, the tanker Thundercat was originally destined for the Netherlands after being loaded in the Middle East with about 650,000 barrels (the equivalent of 27 million gallons) of diesel. It went to New York. Another tanker, Proteus Jessica, loaded in the Singapore area with a similar diesel supply also headed to New York.
For regions including New England, competition with Europe for diesel supplies will intensify next year when an EU ban on Russian refined product purchases is implemented, Lipow said. Diesel exports are of particular interest with the date of February 5, 2023, when the EU sanctions on Russian refined oil products begin, said BIMCO’s chief shipping analyst Niels Rasmussen, adding that 90% of the EU’s import volumes are diesel.
“The EU must replace on average 2 million tons of diesel imports from Russia,” Rasmussen said. “In addition, the International Energy Agency has estimated that the EU’s demand for refined products will increase by 300,000-500,000 barrels per day during winter to meet heating demands.”
I’m $10K in the HOLE so far under Brandon between losses in my IRA AND PMs (which never happens!) and increased energy, gas and food costs.
And I’m a bottom feeder! I can’t imagine what others further up the Food Chain are going through. I hope it hurts, though.
Hoping they make their voices heard on November 8th! It’s a perfect opportunity for some RAT Stompin’!
“If the [Brandon] administration wants to replenish New England gasoline or distillate inventories at the expense of exports, they need to waive the Jones Act for refined products loading on the Gulf Coast for delivery to New York, New Jersey, and New England,” Lipow said. “Unfortunately, I don’t think they will do it until it is too late.”
Brandon and Crew are well aware of this. This is their PLAN Fer Pete’s Sake! *SPIT*
Of course they will. Joe is already saying id Republicans the congress inflation will get worse.
And Joe’s warning of a long cold winter. His handlers are kicking themselves for telling Joe anything.
Thanks for the ping!
I recommend bookmarking https://www.driveonwood.com/
It has plans for gasifiers that will allow you to run any internal-combustion engine using things like wood or corncobs. Very handy in case normal fuels become unavailable for whatever reason.
“Instead we have a corrupt vegetable and a bunch of partisan assholes running things.”
Instead we have a corrupt vegetable and a bunch of commies, socialists, Marxists, leftists, libtards, anarchist, eco-wacko assholes running things.
...so that’s why Brandon has been drawing down the “Strategic Petroleum Reserve”, to screw America this winter!?!
...I think you’re right, it’ll be “scorched earth” from there on in!
Agreed. What the Biden Administration has done to energy production is a shame. And yes, we need the Keystone pipelines running.
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