“The Global Diesel Crunch Is Going To Get Worse”

“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.

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.

The U.S. exports growing volumes of diesel to Europe, but it is unlikely to ramp up flows much higher because American inventories are also well below seasonal averages while refineries already operate at close to capacity levels… With U.S. inventories low and “the industry basically running all out,” “it’s very difficult for me seeing that there’s going to be a lot of flow from the U.S. into Europe,” Simmons added…”

https://finance.yahoo.com/news/global-diesel-crunch-going-worse-210000145.html