Pro Farmer Analysis. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. In Washington, officials are mulling restricting, or even banning, diesel exports. What This Week Revealed November 4, 2022. Europe will be short of diesel then, and Biden needs to consider that too. The White House has announced $308 million in additional humanitarian assistance for Afghanistan, offering new aid to the country as it edges toward a humanitarian crisis since the Taliban takeover nearly five months ago. and while inventories are record low, the four-week rolling average of distillates supplied - a proxy for demand -. pic.twitter.com/h3xiyEYEdv, EU Leaders Set To Meet To Discuss Energy, Ukraine Security, Energy Crisis Poses Existential Threat To Europes Industry, Collapse Of Asias Largest Aluminum Producer Leaves Massive Hole In Market, Four Reasons Why The U.S. Is Grappling With A Diesel Shortage, Saudi Arabia Reiterates Commitment To China, Regardless Of U.S. On the heels of the latest round of labor negotiations between the National Mediation Board, unions, and freight railroads, the Association of American Railroads has released a report projecting that the economic impact of a nationwide railroad strike could be more than $2 billion a day. November 05, 2022 05:16 PM. View More Latest News . For all of 2021, the spread averaged less than 40 cents. Any trading and execution of orders mentioned on this website is carried out by and through OPCMarkets. ", "It has become clear in our post Presidential Emergency Board ("PEB") negotiations with the Rail Carriers that they are counting on the Federal Government to come to their aid if we are unable to reach a Tentative Agreement, and so far, we have not reached an Agreement," BLET President Dennis Pierce and SMART-TD President Jeremy Ferguson stated. Latest News. The diesel market is in a perfect storm as prices surge, supply dwindles ahead of winter OPIS' Tom Kloza breaks down the diesel supply shortage. So now that the genie is out of the bottle, here are the choices the Biden admin faces, all of them unpalatable: The bottom line, as the Bloomberg energy strategist notes, is that "the timing of todays diesel crisis couldnt be worse." Therefore, a low distillate stockpile at the end of April 2008 is less alarming than one approaching October 2022. At the start of 2022, it was about 47 cents. November 05, 2022 05:11 PM. If he leaves the market alone, prices are likely to rise further before they drop; if he intervenes, either setting up minimum inventory levels or restricting exports, price increases will likely be felt elsewhere into the world. The diesel market is in a perfect storm as prices surge, supply dwindles ahead of winter OPIS' Tom Kloza breaks down the diesel supply shortage. But the impact of such band aids will be tiny. . Delta's Trainer refinery in Pennsylvania is also returning from seasonal maintenance, which will increase regional diesel production. Statista. Quick Analysis with our professional Research Service: Toplists & Rankings: Best Employers Portal. EIA. (October 3, 2022). A shortage would mean higher costs for everything from trucking to farming to construction. 26/09/2022 - 13:18. Find latest news from every corner of the globe at Reuters.com, your online source for breaking international news coverage. Both the union and railroad negotiators will meet again with the National Mediation Board on Thursday and Friday. HOUSTON, TEXAS - JULY 29: Gas prices are displayed at an Exxon gas station on July 29, 2022 in Why is there a diesel shortage this year? That means the impact could spread far beyond the agencys payday lending rule. The need for a major reduction in consumption from trend implies a relatively severe downturn in the business cycle across North America, Europe and Asia. In a testament to just how clueless the Biden admin is, last spring wholesale diesel prices surged to all-time high as inventories plunged in April and May, pushing retail prices to a record high. Get this delivered to your inbox, and more info about our products and services. Second, foreign demand is also strong, with. Please do not hesitate to contact me. Friday, Oct 28, 2022 - 01:14 PM. At the start of 2022, it was about 47 cents. But with spare capacity almost exhausted, a recession is the most likely route to rebalancing the distillate market in particular and the petroleum market in general. Over the last 40 years, American diesel inventories have never dropped below 85 million barrels, even at the end of the heating season. Get the latest update on UAE, business, life style, UAE jobs, gold rate, Exchange rate, UAE holidays, Dubai police, RTA and prayer times from UAEs largest news portal. He is of Italian (father) and French-Canadian and English (mother) descent, and is the grandson of baseball player Tony Lupien. Latest News. Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading, 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, he is certainly draining a million barrels of, US energy lifeblood just to buy a few midterm votes, assuring energy producers have. Friday, Oct 28, 2022 - 01:14 PM. Another option is forcing oil companies to build up stocks quickly ahead of the winter by setting a minimum inventory level, similar to what the European Union did for natural gas stockpiles. The U.S. Treasury yield curve between two- and ten-year securities is more inverted than at any time since March 2000 and before that February 1982, both of which were associated with the onset of recessions. U.S. diesel supplies are becoming critically low with shortages and price spikes likely to occur in the next six months unless and until the economy and fuel consumption slow. Profit from the additional features of your individual account. At least two vessels carrying around 1 million barrels of diesel are due to arrive in New York after being diverted from their original destinations in Europe. But the cost of the laissez-faire approach is higher inflation and a much faster recession as US industries shut down. 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. You need a Statista Account for unlimited access. Are you interested in testing our corporate solutions? 11/09/2022 - 15:35. Get top headlines from the Union-Tribune in your inbox weekday mornings, including top news, local, sports, business, entertainment and opinion. October 3, 2022. John Kemp is a Reuters market analyst. The global petroleum and refining system has proved unable to keep up with rapid growth in fuel consumption as a result of the manufacturing and freight-led recovery after the coronavirus pandemic. 5-30-90 Day Outlook: Wheat (Nov. 4) November 4, 2022. The problem with a mandatory minimum stock level is that it would force American refiners to import more or reduce their exports or both. View More Latest News . This is the context in which U.S. officials told their Saudi counterparts there was no market basis to cut production targets before last weeks OPEC+ meeting, according to the U.S. National Security Council. "Monthly retail prices for diesel fuel in the United States from September 2020 to September 2022 (in U.S. dollars per gallon)." Premium Statistic Diesel fuel retail prices per month in the U.S. 2020-2022 Premium Statistic U.S. automotive dealers and gas stations ad spend 2020-2021 Leading gas station chains "The national average price for diesel today is $5.30 per gallon and is expected to go up 15 to 20 cents in the next few weeks," said Andy Lipow, president of Lipow Oil Associates, LLC. Excluding a brief interval from late April into mid-May, that would be a record high. 115 million tonnes of diesel in the first eight months of 2022, down from 119 MM in the same period of 2018, according to the National Bureau of Statistics. Thats how it should work. Slow growth is just one of them. Distillate inventories were a massive 26 million barrels (-20% or -1.94 standard deviations) below the seasonal average for the previous ten years (Weekly petroleum status report, EIA, Oct. 26). "Europes Energy Crisis Has Ended Its Era Of Abundance" by Irina Slav, "Dodgy Demand Data? Ampere Electric Scooters Sold in Record Numbers This Festive Season November 05, 2022 05:16 PM. Distillates are overwhelmingly used in manufacturing, freight transport, farming, mining, forestry, and oil and gas extraction, so consumption is driven primarily by the economic cycle rather than prices. Get top headlines from the Union-Tribune in your inbox weekday mornings, including top news, local, sports, business, entertainment and opinion. Amtrak would also be significantly impacted, according to the AAR report, because the passenger railroad service owns a very small fraction of its rail system, with the remaining 97% running on tracks owned and maintained by freight railroads. The worlds two largestrefinerysystems are both producing less distillate fuel than before the pandemic erupted. Combined with benefits like retirement, and health care, employees would earn $160,000 a year. An ongoing diesel shortage would lead to higher trucking, farming and construction costs. Microsoft is quietly building a mobile Xbox store that will rely on Activision and King games. As a result, retail diesel prices including applicable taxes are now $1.45 per gallon higher than for gasoline, a record premium, up from just 24 cents per gallon a year ago. Dettol: 2 1 ! Oil production cut: Are the US and Saudi Arabia on a damaging collision course? John Cena, Actor: The Suicide Squad. "The national average price for diesel today is $5.30 per gallon and is expected to go up 15 to 20 cents in the next few weeks," said Andy Lipow, president of Lipow Oil Associates, LLC. The price of diesel stands at Rs.97.28 per litre in Mumbai and Rs.92.76 per litre in Kolkata. The shortage of the fuel used for heating and trucking and - generally speaking - to keep commerce and freight running, has become a key worry for the Biden administration heading into winter, perhaps even bigger than the price of gas heading into the midterms (well, not really). Distillate concentrations were low in the spring of 2008, nevertheless. Its unacceptable. In July, the last month with available full data, US diesel exports to Latin America hit a record high of 1.2 million barrels, double the amount a decade ago. 'I couldnt believe we made it ': Florida firefighter rescues girlfriend from fiery interstate crash Accessed November 08, 2022. https://www.statista.com/statistics/204169/retail-prices-of-diesel-fuel-in-the-united-states-since-2009/, EIA. to produce more), the real crisis is not oil or gas, Sorry, Diesel Prices Are Likely To Climb Again Soon. Therefore, a low distillate stockpile at the end of April 2008 is less alarming than one approaching October 2022. As a Premium user you get access to background information and details about the release of this statistic. Logistics CEOs tell CNBC the impact of a nationwide rail strike would impact the economy far more than a port strike on the West Coast. Ultimately, the imminent arrival of the bone-crushing recession will rebalance the market, reducing demand, particularly as the housing market cools and construction slows down, and consumer demand for goods declines, reducing trucking needs. Get full access to all features within our Corporate Solutions. Desperation for such basic necessities has been further exacerbated by the COVID-19 pandemic as well as health care shortages, drought and malnutrition. But a deeper and more prolonged slowdown in the United States and/or in Europe and Asia will be needed to boost inventories significantly. The United States is experiencing a diesel shortage, particularly on the East Coast, as a result of multi-year low stockpiles and supply bottlenecks with reports suggesting that only 25 days of fuel is left in the nation's fuel bank. Latest News. Other interventions would have significant consequences, potentially harming American allies. At $5.324 a gallon, theyre 50% higher than this time last year, according to AAA data. The country's long-troubled economy has been in a tailspin since the Taliban takeover. All material subject to strictly enforced copyright laws. Third, and according to many, most important of all. The leading economics blog online covering financial issues, geopolitics and trading. D-Day Approaches: Crack Spread Soars As Diesel Market Braces For Historic Shock, The Diesel Market Is Soaring, And Gasoline Prices Will Catch Up This Summer, Global Diesel Shortage To Push Oil Prices Much Higher, Gas Stations Will Run Dry": Catastrophic Scenario For Diesel Emerging, Global Diesel Shortage Raises Risk Of Even Greater Oil Price Spike, China Asks State-Owned Refiners To Halt Gasoline, Diesel Exports, U.S. Diesel Stocks Set To Fall Critically Low, Diesel Is The U.S. Economy's Inflation Canary, the crisis gripping the US diesel market is getting out of hand, as demand is surging while. He then continued on to be a bodybuilder Monthly retail prices for diesel fuel in the United States from September 2020 to September 2022 (in U.S. dollars per gallon) [Graph]. An ongoing diesel shortage would lead to higher trucking, farming and construction costs. OPEC: Higher Oil Investments Are Needed To Avoid Rampant Volatility, U.S. Rig Count Still 305 Below Pre-Pandemic Levels, Geopolitical Risks Rise In Energy Markets, OPEC+ Insists Its Production Cut Was Not Political, Global Oil Demand Rebounded By 2 Million Bpd In August. But while the White House claims to be so very concerned about the coming diesel crisis, it is doing absolutely nothing besides draining the SPR which has zero impact on diesel production. The price of diesel stands at Rs.97.28 per litre in Mumbai and Rs.92.76 per litre in Kolkata. November 05, 2022 05:11 PM. US faces diesel shortage. Audi Q7 Limited Edition Launched, Only 50 Units Available. *. Fraud or no fraud? "The holding will call into question many other regulations that protect consumers with respect to credit cards, bank accounts, mortgage loans, debt collection, credit reports, and identity theft," tweeted Chris Peterson, a former enforcement attorney at the CFPB who is now a law There is not enough crude available to satisfy a big increase in demand from the refiners in China without depleting inventories further and sending prices higher. If the White House opts to intervene, the less harmful measure would be to release a small reserve of diesel that the government keeps for emergencies (clearly they have no problem doing that). 11/09/2022 - 15:35. US faces diesel shortage. Stabilizing then rebuilding inventories to more comfortable levels will require a significant slowdown in freight movements and manufacturing activity. Retail prices have been steadily climbing for more than two weeks. But now, it's too late, and national stockpiles have drained as refiners entered maintenance season and as Russias war in Ukraine tightened global supplies and limited imports. For those asking. That, according to Blas, is an unlikely scenario, however: The oil market would try to keep inventories from falling that much, with prices rising high enough to slow the economy, curtailing demand. European Parliament Members, Cristian Terhes et al, push back against Totalitarian Digital ID and Carbon Tyranny in Europe. US Diesel Shortage Increasingly Likely Until Economy Slows. What comes next is, well, ugly (while weekly demand dipped slightly in the latest week, its still at highest point in two years amid higher trucking, farming and heating use). In addition to the rails itself, the freight railroads also offer services to Amtrak ranging from station maintenance, train dispatching, and emergency repairs to security. This isnt all that surprising. Sign up for free newsletters and get more CNBC delivered to your inbox. There are early indications manufacturing and freight activity peaked in the third quarter of 2022. Aspirin Express icroctive, success story NUTRAMINS. For reprint rights: Inciting hatred against a certain community, Netflix 'Manifest' season 4: Release dates by time zones, Elon Musk says he was left with no choice on Twitter sackings, claims firm was losing $4 million daily, What is connection between Madonna and Weird Al Yankovic? Norfolk Southern finds success with new ideas for supply chain bottlenecks, There's a major shift underway in manufacturing for U.S. companies, The diesel market is in a perfect storm as prices surge, supply dwindles ahead of winter, OPIS' Tom Kloza breaks down the diesel supply shortage. Access to this and all other statistics on 80,000 topics from, Show sources information Get top headlines from the Union-Tribune in your inbox weekday mornings, including top news, local, sports, business, entertainment and opinion. By John Kemp, Senior Market Analyst at Reuters . With refineries enjoying sky-high margins, more diesel should be coming. But the impact of such band aids will be tiny. For all of 2021, the spread averaged less than 40 cents. By ZeroHedge - Oct 20, 2022, 3:00 PM CDT. Since then, the inventory position has tightened even further, with stocks estimated to have fallen to a record seasonal low of fewer than 27 days of demand in October. U.S. refineries produced an average of 4.9 million barrels per day of distillate fuel oil in 12 months ending July 2022, down from 5.2 MM in the same period ending July 2019. New, Insights into the worlds most important health markets, Figures and insights about the advertising and media world, Everything you need to know about the industry development. U.S. refineries produced an average of 4.9 million barrels per day of distillate fuel oil in 12 months ending July 2022, down from 5.2 MM in the same period ending July 2019. Diesel is priced at Rs.89.62 per litre in Delhi. "Depending on the length of any service interruption, the overall impact would double each day the interruption continued," said Alan Baer, CEO of OL-USA. The United States is experiencing a diesel shortage, particularly on the East Coast, as a result of multi-year low stockpiles and supply bottlenecks with reports suggesting that only 25 days of fuel is left in the nation's fuel bank. Your Reason has been Reported to the admin. The diesel prices continue to remain steady across major cities on 27 July 2022. Get the latest science news and technology news, read tech reviews and more at ABC News. A train with 100 containers or trailers could have 200,000 UPS packages headed for our doorsteps.". Please create an employee account to be able to mark statistics as favorites. ``The United States continues to urge the Taliban to allow unhindered humanitarian access, safe conditions for humanitarians, independent provision of assistance to all vulnerable people, and freedom of movement for aid workers of all genders,'' the agency said in a statement. The materials provided on this Web site are for informational and educational purposes only and are not intended to provide tax, legal, or investment advice. The diesel prices continue to remain steady across major cities on 27 July 2022. John Cena, Actor: The Suicide Squad. Heres why, E-governance done right: Lessons from how TCS aced Passport Seva. Copyright 2022 Bennett, Coleman & Co. Ltd. All rights reserved. "How To [Read/Tip Off] Zero Hedge Without Attracting The Brents six-month calendar spread has been trading in a backwardation of more than $8 per barrel, in the 98th percentile for all trading days since 1990, a sign of how tight the crude market is already. Register in seconds and access exclusive features. Helicopters]". White House spokesperson Emily Horne said in a statement Tuesday that the new aid from the U.S. Agency for International Development will flow through independent humanitarian organizations and will be used to provide shelter, health care, winterization assistance, emergency food aid, water, sanitation and hygiene services. , 210 2829552. The price of diesel stands at Rs.97.28 per litre in Mumbai and Rs.92.76 per litre in Kolkata. : , .. Diesel rates remain steady on 27 July 2022. US officials are particularly worried about the northern part of the US East Coast, where inventories are low both seasonally and in absolute terms. That money, now cut off, financed hospitals, schools, factories and government ministries. Its no longer TCS vs. Infy vs. Wipro vs. Accenture. But right now, refiners and retailers are making record profits at the expense of the vast majority of Americans. You can only download this statistic as a Premium user. (Catch all the US News, UK News, Canada News, International Breaking News Events, and Latest News Updates on The Economic Times.). Brazil and Chile short of diesel. Directly accessible data for 170 industries from 50 countries Retail prices have been steadily climbing for more than two weeks. So far, five of the 12 unions, representing 21,000 employees, have reached voluntary agreements with the railroads. What comes next is, well, ugly (while weekly demand dipped slightly in the latest week, its still at highest point in two years amid higher trucking, farming and heating use). "If farmers do not receive fertilizer, it results in lower crop yields, higher food prices, and more inflation for consumers. At the time, this website (and many others) warned that we have to take urgent steps now to avoid a crisis and nobody moved a finger; jaw bones on the other hand never stopped. facts. Europe will be short of diesel then, and Biden needs to consider that too. Pro Farmer Analysis. Wage increases proposed by an emergency board appointed by President Biden would be the most substantial in at least 40 years of rail labor negotiations. 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