Over the next few months, the shortages could become even worse when heating season begins, which will coincide with the planned EU ban on imports of Russian seaborne fuels at the start of 2023.
-WiscoDave
Friday, August 12, 2022
The Global Diesel Crunch Is Going To Get Worse
Despite signs of weakening economic growth globally, regional diesel markets are tight and could tighten even further when winter comes and when Europe bans imports of Russian crude and fuels. Distillate fuel inventories are low in the United States and Europe. Stockpiles in the U.S. haven't increased this summer as usual, and in one month since the end of June, they have seen the biggest drawdown for this time of the year in at least 32 years. The fuel market in Europe is even tighter as industries and utilities look to switch to oil products from natural gas, whose prices are at record highs after Russia slashed deliveries to the EU and showed it could not be considered a reliable energy supplier.
