U.S. Diesel Stocks Hit Historic Lows as Fuel Prices Rise

Diesel fuel stocks in the U.S. have fallen to 103.4 million barrels, the lowest level since the early 1980s. This decline comes as the heating and agricultural seasons approach, which could lead to rising prices. Global demand for diesel typically peaks in October, and with low stocks, this could trigger a spike in prices and inflation. The reduction in supply is attributed to several factors: the war in Iran has reduced the export of refined fuels, Ukrainian drone attacks on Russian refineries have halted diesel exports from Russia, and Moscow is considering extending its export ban. The margin for U.S. refineries producing diesel has reached record levels, but the available volumes are insufficient to cover the shortfall. The retail price of diesel fuel in the U.S. has surpassed $5.60 per gallon, nearing the record set in 2022. Meanwhile, gasoline prices remain above $4 per gallon. Increased demand amid low stocks may lead to higher diesel prices and increased transportation costs.