Fuel producers warns of diesel shortages on east coast

“Some cities might run dry on diesel for a few days, at least at the terminal level.”

Forget what the so called “Fact Checkers” say; America is running out of diesel fuel. At least, that is, is you listen to and actual fuel supplier Mansfield Energy. Worst to get hit they say, is the east coast who could actually run out for days at a time in some areas. An issue that no “fuel surcharge” will cure for the repossession and auto transport industries.

Last week, we posted a story from Bloomberg News that Diesel stockpiles in the U.S. are reportedly at their lowest point since 2008, with only enough fuel for a 25-day supply. With America’s mid-term elections around the corner, it of course became politicized, and so called Fact Checkers came out of the woodwork to spin a new defensive narrative to shield their political preferences.

But no spin can outweigh the opinion of fuel supplier Mansfield Energy, who on Monday issued a Red Flag advisory for businesses on the East Coast of the United States to prepare for a diesel shortage. Especially in the southeastern region of the U.S. They speculated that it could be the result of “poor pipeline shipping economies” and a historically low supply of reserves.

Friday’s alert specifically includes North and South Carolina, Virginia, Tennessee, Georgia, Alabama and Maryland.

The normal level of barrels in storage on the East Coast market is 50 million. But now, that supply has dwindled to less than 25 million.

“A tight diesel supply will force prices to go up, which will eventually make it too expensive for some people,” Mansfield reported in a press release on Monday. “High prices will bring demand back down enough that it balances with limited supply.”

Mansfield also warned that at the national economic level, consumers may feel pain at the pump, but for businesses that rely on diesel for operations, supply will still be available.

But then they digress.

“That is not to say there will not occasionally be situations where there is a true physical lack of products,” they stated. “Some cities might run dry on diesel for a few days, at least at the terminal level. But the fuel supply chain is dynamic, and suppliers will rally to fill in any gaps in supply.”

In preparation for the shortage, Mansfield advised bulk fuel buyers preparing for the shortage to not to panic and order fuel when they do not know whether it will fit in the tanks or not. Fuel should be available by normal means in “most areas,” they claim.

“Retail consumers shouldn’t expect to see widespread fuel stations with bags over the pumps,” they also stated. “It may happen on a rare occasion (and when it does, you’ll be sure to hear it in the news), but in general retail stations will find supply and stay running. Higher prices will simply get passed on to consumers.“

Source: Fox Business, WBTW