The #diesel shortage that rattled the White House last week is spreading from the northeast to the southeast, prompting at least one supplier to activate emergency agreements.
“Because the situation is changing rapidly,” fuel supplier Mansfield Energy said in a note to customers, 72 hours’ notice is now required for deliveries to ensure the safety of fuel and cargo. In the tightest areas, fuel prices are 30 to 80 cents above the market average, Mansfield said, adding that Tennessee “faces a particularly tough challenge.”
“Occasionally, shippers have to travel to multiple terminals to find supplies, causing delivery delays and straining local cargo capacity,” the statement said.
National diesel inventories are at their lowest seasonal levels since entering winter, and fuel rationing has begun in some areas in the Northeast. Shortages will almost certainly push up heating and truck fuel prices and put further pressure on household budgets.
Supplies are being delivered, but not fast enough. The Colonial Pipeline, the main source of supply for the Southeast market, was recently booked to transport diesel, heating oil and jet fuel. However, according to the latest pipeline schedule, the first full cycle won’t arrive in Atlanta until November 3, and on the New York waterfront a week later. While New York is scheduled to receive several overseas shipments, they won’t arrive until the end of the month.
The shortage has prompted some traders to remove physical delivery of fuel from Nymex contracts, making the financial instrument an unusual source of supply. These deliveries will take place in November.
#diesel #vin diesel
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