Diesel shortage in the United States is increasing at a rapid pace and is causing the economy to collapse in the near future. US distillate oil stocks are at an all-time low. In this worrying situation, crude oil prices are likely to rise further in the coming months.
According to data from the US Energy Information Administration (EIA), stocks of heating oil, distillate fuel and other types of diesel products fell to 109 million barrels last week. In its “Weekly Report on the State of Oil,” the Energy Information Administration confirmed that inventories of distilled oil have fallen to 66 million barrels over the past 100 years.
During the peak of the COVID’19 outbreak in the first half of 2020, when the world was watching lockdowns, compensation of 45 million barrels was amassed. However, stocks today have remained at 85 of the total since 2000.
In 2008, stocks amounted to 21 million barrels. At that time, prices were only setting records, having reached their lowest level in 1996.
Summer brings driving season and increases the processing of crude oil to produce more fuel and gasoline. This increases the number of distillate stocks.
However, this year the situation is quite the opposite. Inventories have failed to reach benchmarks and a drop of 2-3 million barrels has been recorded since the end of June. If the situation remains the same, the decline records of the past 30 years will be surpassed.
If we only look at the data for the past four or five weeks, we see that the average net export of distilled oil has been at 1.4 million barrels in a single day.
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