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 …

Diesel Demand Sinks, Pushing Market Prices Lower

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September 26, 2022 Alan Apthorp After closing Friday below $80/bbl for the first time since January, crude markets are continuing their selloff. CFTC data shows that all oil products are seeing reduced buying among institutional investors (hedge funds, money managers, etc), with diesel demand shedding the equivalent of 39 million barrels of holdings over the past 3 weeks. Demand data seems …

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 …

EIA Shows Record Oil Exports, More Supply Tightening

Rachael Hirschman News

August 18, 2022 Alan Apthorp Yesterday’s EIA report left plenty for markets to unpack. Oil markets got a lift, with diesel prices leading the way. Export data got the most attention, with US exports rising to 5 million barrels per day – their highest point ever, and by a wide margin. The report shows that US crude is in high demand …

Gasoline Slump, OPEC+ Snub, and Iran Deal – Catch Up on Fuel Markets

Rachael Hirschman News

August 4, 2022 Alan Apthorp The diesel crisis continues even as gasoline markets are slumping. OPEC+ barely moved to increase its output goal, keeping global markets tight. And the US and Iran are heading back to the negotiation table, following the US tightening sanctions. Let’s unpack the day’s news.   Yesterday, the EIA published its weekly report which showed a headline 4.5 …

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 …