For all the drama surrounding Biden’s latest Strategic Petroleum Reserve fiasco and his admin’s ridiculous idea to “stimulate” US energy producers to pump more oil because, you see, Biden promises to buy oil at some unknown point in the future (he may or may not, but right now he is certainly draining a million barrels of emergency US energy lifeblood just to buy a few midterm votes, assuring energy producers have zero incentive to produce more), the real crisis is not oil or gas, but diesel.
The problem is that as we repeatedly warned over the summer, even as others were transfixed by the moves in gas, see:
- Sorry, Diesel Prices Are Likely To Climb Again Soon (Aug 4)
- Can The Global Gasoline And Diesel Crisis Be Solved? (June 21)
- D-Day Approaches: Crack Spread Soars As Diesel Market Braces For Historic Shock (May 3)
- The Diesel Market Is Soaring, And Gasoline Prices Will Catch Up This Summer (May 1)
- Global Diesel Shortage To Push Oil Prices Much Higher (March 25)
- “Gas Stations Will Run Dry”: Catastrophic Scenario For Diesel Emerging (March 23)
- Global Diesel Shortage Raises Risk Of Even Greater Oil Price Spike (Mar 12)
- China Asks State-Owned Refiners To Halt Gasoline, Diesel Exports (Mar 10)
- U.S. Diesel Stocks Set To Fall Critically Low (Feb 18)
- Diesel Is The U.S. Economy’s Inflation Canary (Feb 8)
… the crisis gripping the US diesel market is getting out of hand, as demand is surging while supplies remain at the lowest seasonal level for this time of year ever, according to government data released Wednesday.
According to the EIA, the US now has just 25 days of diesel supply, the lowest since 2008; and while inventories are record low, the four-week rolling average of distillates supplied – a proxy for demand – rose to its highest seasonal level since 2007.
…click on the above link to read the rest…