Diesel and Heating Oil Inventories are WAY TO LOW

[dan_s]

As I have been telling for many months, US distillate inventories are WAY TO LOW to make it through a cold winter.

From OilPrice.com

- Diesel cracks have hit all-time highs this week in both Europe and North America as an already super-tight inventory situation has been aggravated by the ongoing French refinery strike.

- With the first refinery walkouts starting September 20, France’s refining capacity was reduced to a little below 40% of nameplate capacity, forcing Paris to release strategic product stocks.

- As the U.S. is heading into harvest season with diesel inventories 20 million barrels lower than a year ago, the US still exports diesel into Europe despite unprecedentedly tight physical availability.

- According to Reuters calculations, the benchmark European diesel refining margin and US distillate margin shot up to $77/barrel on Monday, easing somewhat to around $70/barrel in today’s trading.
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We have idiots in US, Canada and Europe that do not realize how serious this problem really is. OECD countries run on diesel. They can build a million windmills and it will not change that fact. WE MUST GET COMMON SENSE ENERGY POLICY SOON.