Fuel supply company Mansfield Energy is sounding the alarm over a diesel shortage that is rapidly developing into a widespread crisis.
On Friday, Mansfield Energy issued a statement about a worsening diesel shortage across the southeastern part of the US. The fuel company blamed record-low diesel reserves and a lack of adequate pipeline infrastructure as the main reason behind the lack of supply. “Poor pipeline shipping economics and historically low diesel inventories are combining to cause shortages in various markets throughout the Southeast,” the company said. These have been occurring sporadically, with areas like Tennessee seeing particularly acute challenges.”
The White House said it is closely monitoring the developing situation, and is devising plans to boost America’s diesel inventories ahead of the winter months, as well as keep fuel prices from spiralling out of control before the midterm elections. According to the Energy Information Administration (EIA), there are about 25 days worth of diesel supply left in the country as of October 14— the lowest since 2008.
The Northeast Home Heating Oil Reserve (NEHHOR) has about 1 million barrels of home heating oil supplies, which Democrats are urging President Joe Biden to tap into in order to reduce rising home heating costs. However, given the region’s surging diesel demand, the reserves would be depleted within six hours. “Because conditions are rapidly devolving and market economics are changing significantly each day, Mansfield is moving to Alert Level 4 to address market volatility,” Mansfield continued. The company is also “moving the Southeast to Code Red, requesting 72-hour notice for deliveries when possible to ensure fuel and freight can be secured at economical levels.”
Information for this briefing was found via Mansfield Energy and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
