The latest EIA update on fuel supplies provided good news: supply is getting better. After COVID-19 and the war in Ukraine, the United States has experienced a low supply that left the public unnerved. Though the country has not been in a state of emergency, it has left many concerned about future supply shortages. Remember, do not panic, the country is not set to run out of fuel anytime soon, and the most recent update gives us even more confidence.
U.S. Diesel Supply Increases
In October, rumors of a looming diesel shortage caused the public to worry. A report left readers worried that the United States fuel supply would run out after 25 days. However, as we have mentioned in past blogs, that statement is not entirely accurate. At that time, the United States had a 25 day supply of diesel remaining. However, that number increases daily, shifting the narrative from a crisis to a constraint.
While the United States was not forecasted to experience a national diesel crisis within the immediate future, some have still been cautious about the future supply. Recently, the Energy Information Administration (EIA) announced that the supply stock has slowly increased from a 25 day supply to 29 days. This number does not represent the number of days the country has until it runs out of fuel, but rather, the amount of fuel the country has on standby. If all of the refineries across the country were to completely shut down, the United States would still have 29 day’s worth of fuel to use. Not included in this number are the foreign imports and amount in production.
The number is encouraging because it shows a steady growth. “What we are seeing at the rack reflects what is being reported by the EIA, “This is a good sign for diesel users”, says Adam Barnett, Diversified Energy Supply’s Director of Supply. “While challenges remain, we are seeing some suppliers trying to move excess product again.” However, that does not mean it is back to normal. In previous years, diesel had a larger supply during this time of year than 29 days worth.
With diesel playing a huge role to keep the economy running smoothly. Trucks, trains, farming and heating are a few of the necessary industries that require diesel to operate. When diesel is constrained, it is important for these sectors to continue having access to diesel supply. What does that mean for your average citizen? People should continue to be cautious as they fill up their tank.
During this supply constraint, remember that this is not a reason for panic. Though supply continues to be limited, it is not going to run out anytime soon. To read about how suppliers can help combat supply chain allocation challenges, check out our most recent blog.