Analyst Warns Of A Fuel Shortage Crisis In The U.S.

Via Oilprice.com

  • Low fuel inventories could lead to a crisis this summer in the U.S.
  • Refinery outages could be disastrous during this period of supply tightness.
  • Sankey: we’ve never seen inventories this low, particularly in the northeast. 

Very low inventories of oil products in the United States and a shortage of refining capacity have laid the foundations for an oil shortage crisis in the United States this summer, Paul Sankey, Lead Analyst at Sankey Research, told CNBC in an interview on Thursday.

“I just don’t think there’s anything the Administration can do about it,” Sankey said, referring to the fact that a refinery cannot be built in time to ease the gasoline and diesel crunch.

Asked about what would happen if an operating refinery were to stop production because of an accident or a hurricane, Sankey said, “we’re on the verge of a U.S. oil crisis as it is, obviously what I’m talking about is shortages.”

“We’ve never seen inventories this low, particularly in the northeast. We haven’t seen gasoline this low at this time of year in history,” the analyst added.

With the hurricane season later in the year, “We might have a crisis this summer, I’m telling you,” Sankey said.

There is a global shortage of refining capacity, and currently the energy world “is completely insane”, he noted.

Earlier this month, Saudi Arabia’s Energy Minister, Prince Abdulaziz bin Salman, said that insufficient investment in global refining capacity is one of the key drivers of the global rally in gasoline, diesel, and jet fuel prices.

There isn’t a quick fix for all-time high fuel prices in America— or elsewhere — analysts say. The quickest fix is not one that American consumers would want — a recession that would lead to job losses.

Some 1 million barrels per day (bpd) of refinery capacity in America has been shut permanently since the start of the pandemic. In the U.S., operable refinery capacity was at just over 18 million bpd in 2021, the lowest since 2015, per EIA data. Rising demand since economies reopened and people returned to travel, combined with lower refining capacity and very tight distillate markets have drawn down U.S. product inventories to below seasonal averages and at multi-year lows, with record-low inventories reported on the East Coast.

-----------------------------------------------------
It is my sincere desire to provide readers of this site with the best unbiased information available, and a forum where it can be discussed openly, as our Founders intended. But it is not easy nor inexpensive to do so, especially when those who wish to prevent us from making the truth known, attack us without mercy on all fronts on a daily basis. So each time you visit the site, I would ask that you consider the value that you receive and have received from The Burning Platform and the community of which you are a vital part. I can't do it all alone, and I need your help and support to keep it alive. Please consider contributing an amount commensurate to the value that you receive from this site and community, or even by becoming a sustaining supporter through periodic contributions. [Burning Platform LLC - PO Box 1520 Kulpsville, PA 19443] or Paypal

-----------------------------------------------------
To donate via Stripe, click here.
-----------------------------------------------------
Use promo code ILMF2, and save up to 66% on all MyPillow purchases. (The Burning Platform benefits when you use this promo code.)
Click to visit the TBP Store for Great TBP Merchandise

13
Leave a Reply

avatar
  Subscribe  
Notify of
Winchester
Winchester

Been stocking up on diesel fuel lately. Acquired a bunch of 55 gallon drums from an auto dealer that were once filled with new motor oil. After cleaning them out I put diesel in them. I luckily have a farmer friend who has been selling me off-road for $3.50/gallon. He has a few thousand gallons left from a fillup last year. Beats paying $6.00+ for diesel at the pump. My goal is a few hundred gallons. Treat it well and store it away for the generator.

Anonymous
Anonymous

I would have left the new oil residue in place , would burn just fine in any diesel engine, good for injectors, pumps etc.

flash
flash

OH NO….I hope this doesn’t affect the availability of my racially sensitive, diversity ice cream supply.

comment image

Winchester
Winchester

Thank you for posting these. I will buy a few and use them as target practice. Nothing beats the explosion of frozen ice cream from a 45 slug.

TN Patriot
TN Patriot

Great Value = Walmart. I’m sure this will be a big hit in Memphrica and become the most stolen item in the store, since all the baby formula has already been stolen.

Recent news story about an Aldi store in the Memphrica hood closing down due to crime and the local residents were claiming they cannot buy food at reasonable prices because stores are racist. They just do not understand that it is due to people who look just like them that cause these food deserts, not stores that are racist.

WillyB
WillyB

Remember, these are the same people who elect again and again, the likes of Maxine Waters, Sheila Jackson Lee, Hank Johnson and others. Jefferson had it right: only property owners should vote.

TN Patriot
TN Patriot

I keep waiting for Johnson’s warning about Okinawa tipping over to come true. Too bad such ignorance is rewarded with a lifetime position in congress. I guess it just shows the mental capability of the electorate.
Jefferson was spot on.

samthere403

The article forgot to mention all the distillate they’re shipping out, including a lot of diesel to South America.

eckbach
eckbach

That’s for all the ships to fetch immigrants from Africa to hike to the Rio Grande, and paid for by the coyotes.

Mike
Mike

So once again they are blaming this all on the Covid hoax. It seems that is their excuse for almost everything. That or they blame it on Russia.

Anonymous
Anonymous

The pandemic was fake so is this manufactured bullshit, time to protest, hell they protest over a criminal getting shot by the police but this affects everyone….no protests.

Call me Jack

Some of my friends and family think that deliberate gas/diesel price increases are meant to push us to buy all electric vehicles.It’s not.Our ELITES know we don’t have the money.This is designed to kill America so that the ELITES can rob the corpse.

Dan
Dan

Can’t force everyone to buy those magical Electric Cars if gas is affordable and available.

Discover more from The Burning Platform

Subscribe now to keep reading and get access to the full archive.

Continue reading