larry johnson brings us news of diesel fuel;

 

 Karl Miller has provided me with another excellent report on the diesel/aviation fuel crisis that is confronting the world. On paper, the United States should be the world’s safety valve in this fuel crisis. American refineries make far more diesel than Americans burn. But every one of those barrels is already spoken for. Between rising domestic demand, heavy export commitments and refineries running near their limit, the U.S. is drawing down its own stocks, not sitting on a surplus. As Miller argues in a new assessment, America has no spare diesel to offer a world that has lost 1.6 million barrels a day of diesel exports. Until finished-fuel supply recovers, the gap will be closed by higher prices, less economic activity, or both.

A physical shortage, not just a price spike
Miller’s central point is that this crisis is about missing barrels, not just expensive ones. He estimates that 2-3 million barrels a day of refined products disappeared from global supply by early September. If that persists, 60-90 million barrels have to be replaced, rationed or drawn from inventories every month.

Diesel is at the center of it. World consumption of diesel and gasoil runs about 29.4 million barrels a day, and diesel runs the trucks, harvesters, mines and backup generators of the global economy. Miller calculates that Gulf and Russian diesel exports in August were 1.6 million barrels a day below February levels. That isn’t a one-time loss that a few emergency cargoes can cover. Importers need a replacement cargo every day, in the right grade, delivered to the right terminal before their tanks run down..........more.............