U.S. diesel supplies are tightening dramatically, with the Energy Information Administration reporting inventories at just 107.9 million barrels as of September 11 – the lowest level for this time of year since records began in 1982. Retail diesel prices have surged past $6 per gallon, the first time they have reached that level, squeezing farmers and truckers across the nation.
Storage Market Signals Ongoing Tightness
Data from storage broker The Tank Tiger show that available diesel storage capacity for lease in North America and the Caribbean Islands rose to a four‑year high of 13 million barrels for October, up from 11 million barrels in June. The Tank Tiger’s chief operating officer, Steven Barsamian, explained that refiners and traders are reluctant to renew storage leases because there is simply not enough diesel to fill the tanks.
“More storage is available for lease because no one wants to renew their existing contracts. Why would you pay for a storage tank when there is no diesel to store?” Barsamian said.
Global Factors Keep Pressure on Supplies
Wars in Iran and Ukraine continue to disrupt diesel production and export flows, stranding millions of barrels per day in the Middle East and Russia. European inventories are also low, with the Amsterdam‑Rotterdam‑Antwerp hub reporting stocks 16 % below the five‑year average in July. In Singapore, distillate inventories hover around 8.2 million barrels, below the 2025 average.
Industry Responses and Outlook
U.S. waste‑management firm EcoBox Dumpsters is curbing fuel costs by using smaller trucks, consolidating routes and confirming pickup schedules to avoid unnecessary trips, according to owner David Garrigus.
Energy market analysts expect the tight market to persist into the first quarter of next year. The EIA forecasts U.S. distillate inventories will stay below 100 million barrels through the end of 2026 and most of 2027. Russian diesel export restrictions are set to remain in place through October, and any escalation in Middle‑East tensions could further limit supplies.
Despite the challenges, record diesel refining margins may encourage additional production. The U.S. diesel crack spread hit a record $118.62 per barrel on September 14, and China has been steadily increasing its diesel exports, offering a modest source of relief.
Implications for the Trump Administration
President Trump’s administration faces mounting pressure from agricultural and transportation sectors as fuel costs remain high ahead of the November midterm elections. The administration has emphasized the need for energy security and is monitoring global developments closely.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
