U.S. facing diesel shortage, prices likely to spike
WICHITA, Kan. (KWCH) - The United States is facing a diesel shortage and unless there’s a change, prices likely will spike.
The U.S. only has about 25 days of diesel supply in reserve, data from the U.S. Energy Information Administration shows. This is a level not seen since 2008.
Diesel is used to power the world, not only for semis and trains, but also to heat homes. Limited supply could lead to a big impact on people’s wallets.
Factors impacting the shortage include the U.S. banning Russian imports and refining capacity being down due to seasonal work, plus high demand.
The diesel shortage also could mean heating oil shortages and bills rising because of it.
Some relief is on the way with vessels carrying 1 million barrels of diesel from Europe to the U.S. east coast, but experts say stabilizing then rebuilding inventories will require a significant slowdown in freight movements and manufacturing activity, which means an economic slowdown.
The U.S. Energy Information Agency said it will be exploring all options to address the problem.
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