Historically low diesel inventories in the Northeast, coupled with a lack of refining capacity, put the region in “a very precarious state”, according to an energy analyst.
“Seventy percent of homes that use fuel oil for winter fuel are located in the Northeast. And quite frankly, we don’t have the refining capacity,” Schork Group principal and co-founder Stephen Schork told Yahoo Finance Finance Live this week.
The owners are getting ready oil price hike as the United States heads into the winter months.
“We don’t have the supplies. And right now, we are now entering peak demand season. So we are in a very precarious situation,” he added.
“If you’re maximizing your gasoline production from the barrel of crude oil, something has to give. And that giveaway has been the diesel fuel market. So we’re going into this winter with historically low inventories,” Schork said.
He points out that whenever the northeast diesel market dried up or ran out of fuel, the industry relied on imports from the northern European refining areas of Amsterdam, Rotterdam and Amsterdam. Antwerp.
“With what is happening in Ukraine, the United States cannot rely on these imports. But we know it now. We have known since February. So a lot of that has been taken into account,” he added.
The United States has also increased its exports of refined products to Europe amid an energy crisis in the region caused by the Russian-Ukrainian war.
Ines is a senior stock market reporter. Follow her on Twitter at @ines_ferre
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