WSJ - Energy Sticker Shock Grabs Spotlight Before Midterms

November 7, 2022 – Wall Street Journal

Energy Sticker Shock Grabs Spotlight Before Midterms

By Benoît Morenne

Stock depletions have been especially pronounced in the Northeast, which relies in part on diesel and heating oil for warming homes. Markets in the Southeastern U.S. also are beginning to feel an impact. Mansfield Energy Corp., a Georgia-based fuel supplier, warned customers of potential shortages last week.

One reason for the dearth of diesel is that global markets are craving the fuel, in part because of the loss of about 400,000 barrels of diesel a day that previously flowed from Russia to Europe, and new international emissions requirements resulting in ships using more diesel, said John Auers, an analyst at consulting firm RBN Energy.

Meanwhile, fuel-making capacity in Europe and the U.S. has decreased by about 3 million barrels a day since before the pandemic, according to consulting firm Rystad Energy, limiting how much diesel refiners can churn out to meet that growing need.

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