Diesel Supply Down 8%: What Trucking Faces Next
Diesel supply is down 8% worldwide — and that’s the number trucking needs to watch. Andy Lipow of Lipow Oil Associates breaks down how Russian refinery attacks, Strait of Hormuz risk and Middle East disruptions are squeezing diesel markets while crude stays relatively softer. If you move freight, buy fuel or manage transportation costs, this […] The post Diesel Supply Down 8%: What Trucking Faces…
Global diesel supply has decreased by 8% due to disruptions in Russia and the Middle East, with approximately 2 million barrels of diesel per day removed from the market. Russian refinery attacks, primarily from Ukrainian drone strikes, have damaged between 30% and 50% of Russia's 6.5-million-barrel-per-day refining capacity. The damage has forced Russian refineries to cut back on production or shut down entirely.
Additionally, Houthi missile and drone strikes in the Middle East have shut down Saudi Arabia's East-West Pipeline, which was carrying 2.8 million barrels per day of crude oil to European customers. This has led to a significant reduction in diesel exports through the Strait of Hormuz, once running at 1.2 million barrels per day.
U.S. East Coast diesel inventories are at their lowest level for this time of year since 1982, and heating oil costs for Northeast homeowners could reach nearly $1,000 per 150-gallon delivery this winter.
Written by urgent.news from FreightWaves's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
