Diesel fuel is in short supply as demand rebounds following the pandemic, while supply remains tight. Prices have surged to record levels, adding to inflationary concerns across the economy. The problem is especially acute on the East Coast, where prices have become “unhinged,” according to one analyst.
What would happen if we run out of diesel?
Entire supply chains can be crippled if trucks don't have the fuel they need to run. It's also critical for use in agriculture. Higher diesel prices could force farmers to scale back plantings or fertilizing, limiting already tight food supplies and driving up food prices beyond the added cost of transportation.
Why are diesel fuel stocks so low in Europe?
Kemp: diesel fuel stocks in Europe are at their lowest since 2008. Russia is a major supplier of diesel, meaning Western sanctions for its invasion of Ukraine are affecting these supplies too. A further rise in diesel prices is expected as production still has to catch up.
Is the oil supply tightness spreading to diesel fuel?
Reuters' Rowena Edwards reported in early February that the supply tightness in crude oil, gas, and coal was beginning to spread to oil products, most notably middle distillates, the most popular among which is diesel fuel.
Why is there a shortage of diesel fuel?
Diesel fuel is in short supply as demand rebounds following the pandemic, while supply remains tight. Prices have surged to record levels, adding to inflationary concerns across the economy. The problem is especially acute on the East Coast, where prices have become “unhinged,” according to one analyst.
Why is there a shortage of diesel oil?
The low supply of diesel fuel is the result of a loss of refining capacity worldwide, after Covid wreaked havoc on the oil industry. Kloza said it is the middle of the barrel — diesel — that has been hit the hardest.
Why is Rotella sold out?
Apparently supply chain issues have hit the additive manufacturers, so Shell's Rotella line is shut down until Q4 2022. So if you use T6 and want to change your oil in the next 12 months, check your stores now!
Who makes Shell Rotella oil?
Royal Dutch ShellShell Rotella is a line of heavy-duty engine lubrication products produced by Royal Dutch Shell. The line includes engine oils, gear oils and coolants. The oil carries both the American Petroleum Institute (API) diesel "C" rating as well as the API gasoline engine "S" rating.
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How is motor oil produced?
Motor oil is made of two components. Base oils account for most of the motor oil while additives make up the rest. The additives include anti-wear additives, friction modifiers, dispersants, detergents, and friction modifiers. There are two types of motor oil—conventional oil and synthetic oil.
What's motor oil used for?
Motor oil serves multiple purposes. It helps lubricate the moving parts and lowers the wear and tear on motor parts. It also helps protect the emission systems and enhances the vehicle’s energy efficiency. Motor oil needs to be changed regularly and not doing so can severely damage the engine.
Energy giants produce motor oil
Global energy giants like Shell, ExxonMobil, BP, and Valvoline produce motor oil. The question about the motor shortage didn't crop up during any of these companies’ most recent earnings calls.
Car owners have been complaining about a motor oil shortage
Car owners have been complaining about a motor oil shortage. Scrolling through social media sites like Twitter and Reddit, some consumers have struggled to find motor oil for their cars.
