According to the EIA, the US now has just 25 days of diesel supply, the lowest since 2008; and while inventories are record low, the four-week rolling average of distillates supplied – a proxy for demand – rose to its highest seasonal level since 2007.
In short, record low supply (courtesy of stifling regulations that have led to a historic shortage of refining capacity) meet record high demand. What comes next is, well, ugly (while weekly demand dipped slightly in the latest week, it’s still at highest point in two years amid higher trucking, farming and heating use).
The shortage of the fuel used for heating and trucking and – generally speaking – to keep commerce and freight running, has become a key worry for the Biden administration heading into winter, perhaps even bigger than the price of gas heading into the midterms (well, not really). As Bloomberg’s Javier Blas writes, “such low levels are alarming because diesel is the workhorse of the global economy. It powers trucks and vans, excavators, freight trains and ships. A shortage would mean higher costs for everything from trucking to farming to construction.”
~~~~~~~~~~~~~~~~~~~~~
What happens if we go into an expanded WWIII? The military needs diesel to function on the ground: troop transport, supplies and equipment. The Deep State is going scorched earth on us as the world implodes. The only question is how we respond to terrorists and traitors.
David DeGerolamo
David, all part of the plan to cripple America’s defenses, insider knowledge admits that we are running short on all manner of arms. 155 mm artillery shells, light missile components meaning, no building them, fighting vehicle parts meaning no repairs to existing inventory….. and on and on!