The world is facing a diesel crisis, and it's not just the US and Europe that are affected. The Northern Hemisphere harvest is about to begin, and diesel prices are soaring, threatening to disrupt the supply chain and impact consumers. The situation is so dire that it's being called a 'perfect storm' by experts, with a warning that a global food crisis could erupt as soon as next year. The US diesel reserves are near 23-year lows, and European stockpiles are approaching levels last seen during the 2022 energy crisis. This is a serious concern, as diesel is a critical fuel for the industrial economy and the transportation of goods and food. The situation is being exacerbated by the Russia-Ukraine war, strikes against energy infrastructure, and disruptions around the Strait of Hormuz. The front-month NYMEX heating oil/WTI crack spread hit a record $102 a barrel, with diesel prices rising far faster than crude. This is a significant issue, as it means that the SPR releases are not only failing to fix the refined product shortage but are also pushing emergency crude inventories towards dangerously low levels. The situation is so dire that it's being called a 'perfect storm' by experts, with a warning that a global food crisis could erupt as soon as next year. The US diesel reserves are near 23-year lows, and European stockpiles are approaching levels last seen during the 2022 energy crisis. This is a serious concern, as diesel is a critical fuel for the industrial economy and the transportation of goods and food. The situation is being exacerbated by the Russia-Ukraine war, strikes against energy infrastructure, and disruptions around the Strait of Hormuz. The front-month NYMEX heating oil/WTI crack spread hit a record $102 a barrel, with diesel prices rising far faster than crude. This is a significant issue, as it means that the SPR releases are not only failing to fix the refined product shortage but are also pushing emergency crude inventories towards dangerously low levels. The situation is so dire that it's being called a 'perfect storm' by experts, with a warning that a global food crisis could erupt as soon as next year. The US diesel reserves are near 23-year lows, and European stockpiles are approaching levels last seen during the 2022 energy crisis. This is a serious concern, as diesel is a critical fuel for the industrial economy and the transportation of goods and food. The situation is being exacerbated by the Russia-Ukraine war, strikes against energy infrastructure, and disruptions around the Strait of Hormuz. The front-month NYMEX heating oil/WTI crack spread hit a record $102 a barrel, with diesel prices rising far faster than crude. This is a significant issue, as it means that the SPR releases are not only failing to fix the refined product shortage but are also pushing emergency crude inventories towards dangerously low levels. The situation is so dire that it's being called a 'perfect storm' by experts, with a warning that a global food crisis could erupt as soon as next year.
