On April 26, a driver refuels their gas tank at a gas station in Cleveland. Aaron M. Sprecher/AP
US energy reserves are depleting quickly due to the supply disruption stemming from the Middle East conflict, as indicated by federal data published on Wednesday.
The significant drop in inventories, which serve as buffers in times of crisis, highlights the decreasing supplies as the energy crisis persists.
Distillate fuel inventories, such as diesel, fell by 1.3 million barrels last week to reach their lowest point since April 2003, as reported by the US Energy Information Administration. Currently, those inventories are 11% lower than their five-year seasonal average.
In recent days, diesel prices, an essential fuel for truckers, railroads, and farmers, reached all-time highs in Wisconsin, Illinois, and Michigan due to refinery outages.
Inventories of gasoline and crude oil decreased sharply last week. Gas stockpiles are currently 4% lower than their seasonal average.
The Strategic Petroleum Reserve, the emergency stockpile that the Trump administration is using to alleviate the supply shortage, decreased by an additional 5.2 million barrels last week.
US oil exports decreased by 26% last week compared to record levels. Nevertheless, exports continue to be high as European and Asian nations aim to substitute crude oil held up in the Middle East due to the closure of the Strait of Hormuz.
Chevron’s CEO Mike Wirth cautioned earlier this week that with ongoing reductions in inventories, fuel may become even more limited.
“Wirth mentioned at the Milken Institute Global Conference that ‘physical shortages will begin to emerge,’ starting in Asia, then progressing to Europe and finally reaching the United States.”
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