Diesel fuel reserves in the US have dropped to the lowest level in four decades. According to EIA data, distillate stocks were reduced to 103.4 million barrels over the past week.
Bloomberg reports that such a low level has not been recorded since the early 1980s. Typically, diesel demand rises in October due to the heating season, harvest, and planting cycle, which could further increase prices and intensify inflationary pressures.
The market is also pressured by conflicts with Iran, the near-total halt of refined fuel exports through the Strait of Hormuz, and restrictions on diesel exports from Russia.
Retail diesel prices in the US have already surpassed $5.60 per gallon, approaching the historical maximum from 2022. Meanwhile, gasoline prices continue to remain above $4.
The margin for diesel production at US refineries has reached record levels, while exports are at unusually high volumes, but supplies still do not meet global shortages.
