U.S. Diesel Exports Hit Record High as Domestic Stockpiles Slide
Diesel Exports Hit Record High as Domestic Stockpiles Slide What I Cover Irina Slav has been writing about global energy markets since 2007, covering the oil and gas industry, energy security, commodities, and the… Diesel fuel exports from the United States hit an all-time high last week, driven by shortages of the fuel in other parts of the world as a result of the energy crisis in the Middle East.
According to the Energy Information Administration, the United States exported diesel fuel at a rate of 1.9 million barrels daily last week, breaking the previous record, set in spring.
However, the EIA data alsoshowedthat diesel fuel production fell last week—as did inventories of the fuel.
They now sit 12% lower than the five-year average.
exports of diesel fuel are going to Europe, which is experiencing especially tight supply of fuels, not least due to the decline in local refineries as European governments pursue an energy transition plan that sees mass electrification of transport.
So far, this has failed to materialize, despite a substantial increase in EV sales across the continent and especially in the EU.
diesel fuel exports have been running at rates of 1.5 million barrels daily for five weeks in a row before rising to the record high.
Because refineries cannot produce more diesel at the moment, fuel sellers have been dipping into inventories.
As a result, these are now at the lowest since 1996, Bloomberg reported.
This state of affairs could become problematic for the domestic U.S.
Diesel fuel is used for the production of heating oil that is used in parts of the country during the winter.
Heating oil is also a winter favorite in other parts of the world, meaning demand for a commodity in already short supply is only going to jump in the coming months—while production declines as refineries enter maintenance season.
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | +0.34% |
| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
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