U.S. Diesel Supply ‘Rapidly Devolving’
Mansfield Energy issued an alert about diesel fuel shortages in several Southeastern states, including Alabama, Georgia, Tennessee, North Carolina, Virginia, and South Carolina. The company also noted “extremely high prices in the Northeast.” “Poor pipeline shipping economics and historically low diesel inventories are combining to cause shortages in various markets throughout the Southeast,” the company said. “These have been occurring sporadically, with areas like Tennessee seeing particularly acute challenges.” It noted that fuel prices are 30 to 80 cents higher than the posted market average due to “tight” supply, while saying that “fuel suppliers have to pull from higher cost options, at a time when low-high spreads are much wider than normal.”
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Fuel carriers are now having to go to “multiple terminals to find supply, which delays deliveries and strains local trucking capacity,” it said. While gasoline prices have dropped since they posted record highs in June, diesel hasn’t decreased nearly as much and currently stands at $5.31 per gallon, according to AAA. Oct. 21 data from the Energy Information show that the country had 25.9 days of diesel left.
