Diesel Shortage in US Could Keep Inflation Elevated

The US diesel inventories reached its lowest levels since 2008, with the Energy Information Administration (EIA) reporting that, as of October 24, the country had 25 days left of distillate supplies.

• Energy analysts attribute the shortage to supply disruptions triggered by Russia's invasion of Ukraine and reduced refinery capacity because of regular fall maintenance and the loss of a major East Coast refinery to a 2019 fire.
• According to the Energy Information Administration, low distillate fuel inventories, which include diesel, jet fuel and heating oil, could push diesel prices close to $5 per gallon, even though the national price of gasoline has dropped below $4 per gallon. Since diesels the main fuel used to power trucks, rails and vessels that transport all sorts of things from food to home goods to holiday gifts across the country, increased prices are likely to bleed into other goods, too.