U.S. diesel fuel inventories fell to a record seasonal low
Kyiv • UNN
U.S. diesel fuel inventories fell to 103.4 million barrels—the lowest level for August since records began. Prices exceeded $5.60 per gallon.
U.S. diesel fuel inventories ahead of the fall demand season have fallen to the lowest seasonal level ever recorded. As of August 21, inventories of distillate fuel, which predominantly includes diesel, stood at 103.4 million barrels, Bloomberg reports, according to UNN.
Details
According to the U.S. Energy Information Administration, inventories had not reached such a low level during this period since record-keeping began in the early 1980s.
Global demand for diesel typically rises around October due to the start of the heating season and increased agricultural activity. Low inventories amid growing demand could lead to further increases in fuel prices and intensify inflationary pressure.
The global market is losing part of its supplies
The situation is being affected by disruptions in the international petroleum products market. Due to the war with Iran, exports of refined fuel through the Strait of Hormuz have nearly ceased, while russia has reduced diesel exports following Ukrainian drone attacks on its oil refineries.
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Retail diesel fuel prices in the United States have already exceeded $5.60 per gallon. This is close to the highest level since the start of the war between the United States and Iran and less than 20 cents below the record set in 2022.
At the same time, margins at U.S. refineries producing diesel have reached record levels in recent weeks. U.S. fuel exports have also risen to a very high level, but their volume does not offset the decline in global supplies.