For all the drama surrounding Biden’s latest Strategic Petroleum Reserve fiasco and his admin’s ridiculous idea to “stimulate” US energy producers to pump more oil because, you see, Biden promises to buy oil at some unknown point in the future (he may or may not, but right now he is certainly draining a million barrels of emergency US energy lifeblood just to buy a few midterm votes, assuring energy producers have zero incentive to produce more), the real crisis is not oil or gas, but diesel.
The problem is that as we repeatedly warned over the summer, even as others were transfixed by the moves in gas, see:
… the crisis gripping the US diesel market is getting out of hand, as demand is surging while supplies remain at the lowest seasonal level for this time of year ever, according to government data released Wednesday.
According to the EIA, the US now has just 25 days of diesel supply, the lowest since 2008; and while inventories are record low, the four-week rolling average of distillates supplied – a proxy for demand – rose to its highest seasonal level since 2007.
www.zerohedge.com/markets/forget-oil-real-crisis-diesel-inventories-us-has-just-25-days-left
Diesel prices are spiking due to refinery constraints and record profiteering by refiners. In keeping with the theme of 2022.
However, I would point out that gasoline prices have seen their largest drop since 2008.
As NOT predicted on Zerohedge. pic.twitter.com/V9zWjNe0xr
— Mac10 (@SuburbanDrone) October 20, 2022
h/t Dan