Commodities Corner: ‘Extraordinarily low’ U.S. diesel supplies keep prices for the fuel high at the pump

by | Nov 3, 2022 | Stock Market

Gasoline prices have started to hit the brakes, but it has been full steam ahead for diesel, with U.S. supplies of the fuel used in freight transportation and agriculture dropping to their lowest on record for this time of year. That has kept U.S. diesel prices high at the pump, with a gain of more than 8% in October, even as gasoline saw little change to prices this past month, based on data from GasBuddy.

Shortages of diesel fuel around the globe and in the U.S. spurred the latest price advance, said Brian Milne, product manager, editor, and analyst at DTN. Milne refers to U.S. diesel fuel inventory as “extraordinarily low,” with supplies in the Northeast “critically low.” A cold winter for consumers in the New England states, the region with the largest concentration of households that use heating oil, would be “very problematic,” said Milne. Diesel can be used in place of heating oil for furnaces. Domestic supplies of distillates, which include diesel and heating oil, stand at 106.8 million barrels as of the week ended on Oct. 28. That’s 19% below the five-year average and the lowest level on record for this time of year, based on data going back to 1982, according to the Energy Information Administration. Refineries have generally reduced capacity as a …

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