The 3 Root Causes of Diesel Supply Challenges

Hirschman Oil Supply News

November 8, 2022 Alan Apthorp It’s no secret that diesel supplies in the US are tighter than they normally are. Numerous publications have highlighted the challenges faced by markets, especially on the East Coast of the US and in Europe. Last week, the EIA published a chart showing that the Northeast US is 40%-50% below the five-year low, while Europe is also sharply …

Curing Misinformation – The Truth About Diesel Supply, High Prices, and Oil Companies

Hirschman Oil Supply News

November 3, 2022 Ashley Fisher Analysis by Sydney Casey The oil industry is complex, and it can be hard for the average person to understand how it operates. This is especially true when it comes to understanding the current diesel supply shortage, high prices, and oil company profitability. Michael Mansfield, CEO of Mansfield Energy, voiced these concerns in an interview with …

Chinese Economy Boosts Oil Market Confidence

Hirschman Oil Supply News

October 17, 2022 Alan Apthorp Oil markets continue to face volatility, with fuel prices rising even as crude oil sinks a bit lower. Fuel markets are continually facing pressure from falling inventories, with diesel supplies at their lowest seasonal level in 40 years. In addition to domestic pressures, international news is also pushing prices higher. China is making moves this week …

East Coast Diesel Shortage – 4 Indicators to Watch

Hirschman Oil Supply News

October 14, 2022 Alan Apthorp Earlier this year, supplies along the East Coast became extremely tight, forcing fuel suppliers to go to high alert and wreaking havoc on supply chains. The problem wasn’t a hurricane or a pipeline outage… there simply wasn’t enough supply in the pipeline to cover demand across the East Coast. On one hand, tight supplies in Europe …

What’s Up with These Diesel Prices?

Hirschman Oil Supply News

August 26, 2022 Alan Apthorp By: Andy Milton Happy Friday everyone!  For those that don’t know me, I’m Andy Milton, SVP of Supply at Mansfield. I’m pinch hitting today on FUELSNews and I want to call out a couple of important market indicators. First, the graphic below shows the history and the forward market structure for gasoline and diesel futures.  Simply …

US to End SPR Releases This Fall – Can Oil Producers Keep Up?

Hirschman Oil Supply News

July 25, 2022 Alan Apthorp For the past several months, hefty withdrawals from America’s Strategic Petroleum Reserve have kept the market afloat. In April, President Biden authorized up to 1 million barrels per day (MMbpd) to be withdrawn from the SPR, which has gone towards balancing US and global markets. By June, the SPR fell below 500 million barrels for …

Gasoline Dominates Headlines, but Diesel Is the Real Challenge

Hirschman Oil Supply News

It’s common for the mainstream media to comment on gasoline prices – something which impacts most consumers every day. But if you live outside the US and Canada, diesel might be the product you’d use more often. In the US, gasoline demand tends to be 2-2.5x higher than diesel demand; in the EU, diesel demand is 3x higher than gasoline …

Will Oil Reach $140? Goldman says yes

Hirschman Oil Supply News

June 8, 2022 Noah Young Oil prices are rising this morning as summer gasoline prices continue to bode ill for consumers. In many parts of the United States, gasoline prices are well above $5/gallon as reported in Monday’s edition of FUELSNews Daily. With prices continuing their trend upward, many are saying that oil will reach a $150/bbl mark. This week …

No Stopping The Oil Rally?

Hirschman Oil Supply News

Looking back at this past week, the upward rally for oil prices has been relentless despite some bearish news this week. Although some days have begun lower, prices have risen the past three straight trading sessions – and today looks to continue that streak. As always, there are a few factors on both sides impacting the fuel market, so let’s …

Where Did All the Fuel Go?

Hirschman Oil Supply News

Diesel inventories have fallen to historic lows, and this week’s meager gain in diesel stocks doesn’t undo months of declining supplies. Fuel prices are at historic levels, trading at hefty premiums above already elevated crude costs. Those premiums, called “crack spreads”, should incentivize refiners to produce more fuel. Indeed, refiners have been producing at over 90% utilization over the past …