According to industry experts, the global diesel shortage won’t resolve until next year, prolonging higher fuel prices that are affecting economies worldwide.
The review coincides with retail diesel prices in the United States surpassing $6 a gallon this month for the first time, putting pressure on farmers and truckers and raising concerns for President Trump ahead of the November midterm elections.
As of September 11, US diesel stocks fell to 107.9 million barrels, the lowest level on this date since record-keeping began in 1982, according to the US Energy Information Administration.
European diesel inventories remain low, with stocks in the Amsterdam-Rotterdam-Antwerp hub 16% below the five-year average in July.
Geopolitical conflicts have significantly disrupted diesel supplies, leaving millions of barrels per day stranded in the Middle East and Russia. This has depleted inventories to historic lows and driven prices to record highs. The shortage has hampered economic activity since diesel fuels sectors such as agriculture, manufacturing, and heavy transportation.
Refiners and traders across North America are choosing not to renew diesel storage leases because of limited fuel availability, according to the review.
Diesel storage capacity available for leasing in North America and the Caribbean Islands, a major trading hub, has climbed to a four-year high of 13 million barrels for October, from 11 million barrels in June.
Analysts also expect record diesel refining margins to encourage more production, limiting price increases.
By CEO NA Editorial Staff
