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.
...
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.”
If Joe Biden has anything to say about it, most of the supply will go to Europe.
So $5/dozen eggs are just the beginning?
Well, if you voted for biden and dimocraps, this is your doing.
Diesel is a commodity in a global market.
If Europe doesnt buy from Russia, then others will buy from Russia as deliveries from elsewhere shift to Europe.
This is like a waterbed. Press down in one spot and the rest rises.
The real problem is if you take supply out of the system. Thats whats already going on in the US. From this year on US refiners are unable to produce as much as they did.
This will affect the global market, almost equally everywhere, after things adjust. Its possible that other nations refiners will be able to make up the difference, but we can only wait on that.
But at least we’re sticking it to Vlad... that’s what matters most.
I think there is a good chance, if Republican gain control of House and Senate, that Joe and the executive branch will do as much stupid stuff as they can and then “remind people” that things got really bad when those Republicans had control.
This is not going to be pretty as it lowers the FED’s effect on inflation.
In total, the USA has been exporting 6 million b/d of refined oil products and 2.96 million b/d of crude oil.
See: eia.gov
it’s hurting us more than russia...
Yes. Russia is getting lower prices for oil. Here in the US, the population has been increasing with the influx from regions closer to the equator, so there are ever more trucks on the highways. Refining capacity needs to be increased.
This won’t go well, expect the worst.
This administration couldn’t handle baby formula.
The Obama-Biden administrations are literally destroying America. /Captain Obvious
To vote Democrat is to risk one’s well-being.
Biden promised he would end the fossil fuel industry. That’s what we’re seeing happen.
Also, if you have your own overflowing domestic supply, and plenty of refineries (as we did in the past), then, like with a full SPR, you can cruise over the rough stretches.
But if you domestic production is way down, refineries are closed and none built, and the SPR depleted as a cheap political trick....
Your country is screwed.
(All three of the supply corners wrecked, “by accident,” or on purpose? Sabotage.)
The SPR is a political trick, and it has been so for many decades, but “depleting” that has had only a marginal effect, if any, on current shortages of refined products.
The US is screwed for much bigger and broader reasons than that. The inability to construct refineries is just a symptom of an entire social system curdling into decadence and paralysis. “Decadence” here doesnt mean just sexual excess.
Got eggs for $1.98 at Aldi’s a few days ago.
Last week I got tomatoes for 98¢/lb.
Check out Aldi’s if they are near you.
Not all their prices are great but alot are.
Watch this and weep.
Matt Walsh:
I’m not worried that this one barista is a whiney, self-pitying weakling. I’m worried that we are building a society full of people like this.
Quote Tweet
Sebastian Gorka DrG
Trans Barrister has meltdown because 8 hours is too long to work on a day...
[Yes, we are totally ready to go toe-to-toe with the Russian Army. Anywhere, anytime, baby! Just check out Rambo #2 here!!]
https://twitter.com/MattWalshBlog/status/1586805084767539200
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.