CEO Warns Gas Stations Could Start Running Dry, Set to Kick Prices of Everything Sky-High
But according to a Bloomberg article by Javier Blas, diesel is an even bigger problem, one no one is talking about. Blas says, “skyrocketing diesel prices should be the main worry of central banks.”
“The dire diesel supply situation predates the Russian invasion of Ukraine,” Blas added. “While global oil demand hasn’t yet reached its pre-pandemic level, global diesel consumption surged to a fresh all-time high in the fourth quarter of 2021. The boom reflects the lopsided COVID economic recovery, with transportation demand spiking to ease supply-chain messes.”
The reason for this is that refineries cut back on production when COVID lockdowns forced demand for their product to fall. But as those lockdowns have become but a bad memory, refineries are now struggling “to match this revival in demand,” Blas warned.
“In the U.S., diesel stocks fell last week to their lowest seasonal level in 16 years,” Blas reported. And Europe is in even worse shape, especially with needed replacement supplies boycotted because it would come from Russia.
The coming crisis as diesel reserves empty out will also mean that countries will soon stop exporting diesel and the supplies to make it in order to shore up their domestic needs. And that means nations that look outside their own borders will suffer serious damage to their economies if they can’t transport goods inside their borders.- READ MORE
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