EAST COAST INVENTORIES HAVE ONLY TWO WEEKS OF DIESEL SUPPLY

RUNNING ON EMPTY: America’s diesel stockpiles are rapidly dwindling, fuel rationing on the horizon

Thomas Catenacci, DCNF

• American diesel stockpiles have been depleted while prices have surged to record highs, leading to higher prices for consumers.
• “I wouldn’t be surprised to see diesel being rationed on the East Coast this summer,” John Catsimatidis, the CEO of United Refining Co., told Bloomberg on Wednesday. “Right now inventories are low and we may see a shortage in coming months.”
• “What we’ve seen this year has been the capabilities to turn oil into diesel and gasoline and jet fuel have diminished,” Jacques Rousseau, a managing director at Clearview Energy Partners, told The Daily Caller News Foundation in an interview.

The U.S. stockpile of diesel fuel, which is vital for the transportation sector and economy at large, hit a nearly two-decade low as fuel prices hit a record high Wednesday.

The nationwide stockpile of distillate fuel oil — a category that includes diesel and fuel oil — declined to about 104 million barrels, the lowest level since May 2005, the Energy Information Administration (EIA) reported Wednesday. East Coast inventories declined to 21.3 million barrels of diesel fuel or about two weeks worth of supply, the lowest level since data was first recorded in 1990.

“I wouldn’t be surprised to see diesel being rationed on the East Coast this summer,” John Catsimatidis, the CEO of United Refining Co., told Bloomberg on Wednesday. “Right now inventories are low and we may see a shortage in coming months.”

The average cost of diesel fuel in the U.S., meanwhile, surpassed $5.55 a gallon Wednesday, the highest level ever recorded, AAA data showed.

Diesel, which has been characterized as the “lifeblood of the global economy,” is vital for the construction, mining and agriculture sectors. The transportation industry alone consumed 122 million gallons of diesel in 2020.

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