Diesel news

[ronobrien]

Anybody know whats up with diesel? Serious question. My brother just told me and i looked up are supply is so low they thinking we are going to run out in a few weeks.

I didnt take this seriously until i looked it up. Something weird is going on.

Eli

The supply is not far from what it normally is under usual consumption rates. The refineries in US are at 100% capacity so any appreciable increases in consumption will upset the balance. No new refineries have been constructed in US since 1977. The ones we have can't process the crude we harvest here. Our crude must go overseas to newer foreign refineries and we must import crude that our refineries can process. That is what I have gathered from various sites on YouTube. The price in the Northeast is skyrocketing way beyond the normal gas/diesel difference. ($3.84/6.09) as of 11/05/22.

 

[Hippocampus]

So far in my limited experience retailers will allow discussion based on the price of the fuel CURRENTLY in their storage tanks. So they may have fuel in those tanks that cost them more or less than the current spot price. They will allow those discussions based on what the fuel costed them only for purchases of sufficient bulk. Lowest I’ve run into is 300g but 500 g has been more typical. Several times have been able to talk with another vessel so the two of us together can buy an entire tank truck and receive a discount. Wholesalers want a truck to go out full and come back empty after just one stop. Given additives to make it marine or home heating can be done just before the truck leaves that’s not an issue as long as the entire truck is offloaded at one stop.
Have also had success in some yards if I’m having work done in that yard or paying a long term berthing fee. Then talk to the yard manager not the Dockmaster nor fuel dock to see if that’s possible. I don’t like to fuel when the yards storage tank is near empty nor agitated from a very recent filling. Best is 24-48 hours after it’s filled. But have run into getting a small break if I prearranged to fill midweek when things are slow.
We’ve also have found WaterwayGuide helpful. There is some regional variation. If you are traveling several hundred miles sometimes that can play to your advantage. Unfortunately people tend to migrate all at around the same time. And you need fuel when you need fuel. So unfortunately we’ve been mostly unsuccessful in using that opportunity.

 

[RT Firefly]

 

[Nomad Willy]

Second that-- Such an unnecessary Mess!

Two very unecessery posts.
Why take time to say that?

 

[Eli27]

Two very unecessery posts.
Why take time to say that?

LMAO


Eli

 

[Old Sea Dog]

I got a chuckle. ...

Sent from my SM-G715U1 using Trawler Forum mobile app

 

[Nick14]

Article on diesel fuel prices and supply in the New York Times this morning:

https://www.nytimes.com/2022/11/10/business/energy-environment/diesel-prices-inflation.html

As others have opined, there are multiple reasons for the current squeeze on supplies and rising prices. The war in Ukraine and halting imports from Russia is one factor. Another major reason is insufficient refining capacity, which is sobering (for those who buy diesel fuel) because more refineries can't be built or brought on line very quickly.

I miss the proverbial 'good old days' of only about 20 years ago, when my friends with gas engine boats would rib me how 'unfair' it was that diesel was a buck a gallon cheaper than gas. I don't think I'll see that again in my lifetime.

 

[KnotYet]

Article on diesel fuel prices and supply in the New York Times this morning:

https://www.nytimes.com/2022/11/10/business/energy-environment/diesel-prices-inflation.html

As others have opined, there are multiple reasons for the current squeeze on supplies and rising prices. The war in Ukraine and halting imports from Russia is one factor. Another major reason is insufficient refining capacity, which is sobering (for those who buy diesel fuel) because more refineries can't be built or brought on line very quickly.

I miss the proverbial 'good old days' of only about 20 years ago, when my friends with gas engine boats would rib me how 'unfair' it was that diesel was a buck a gallon cheaper than gas. I don't think I'll see that again in my lifetime.

The premium paid for diesel fuel is probably here to stay. There are simply more
gallons of gas vs. diesel per bbl of crude after today's hi-tech refining processes.

 

[Hippocampus]

KY that may shift as EVs take hold for personal cars. Think the conversion away from diesel for large long haul land heavy load transport, large industrial remote site industrial machinery and farm combines as such will be slower. Single units cost more. Things like mining trucks or even semis are big ticket items. They’re more likely to be maintained and work for their entire service life before replacing. So there may be a transition period with lowering gasoline demand but persistent diesel demand. The market will reflect that with more crude converted to diesel. There’s also the possibility of biofuels being added. Net result with the total market decreasing what’s still in demand (i.e. diesel) will be produced at a reasonable cost in an effort to slow further shrinkage.
Due to refuse issues and absence of major recycling plastic use except for clothing is also shrinking. Petrochemical use for personal products will probably be stable. Diesel produces ~15% more usable energy than petrol so should run 15% higher in cost. That’s obviously no longer the case. But do think cost will decline as crude oil prices decline.

 

[Hippocampus]

KY you’re right currently more petrol than diesel is made per barrel. But in reading about it there’s some latitude in what the final products are. In the past that wasn’t true. Heavy v light did limit outcome. But apparently that hasn’t been true for awhile. Nor the length of the HC chain. In the US many refineries work to shorten the chain to get to C6-9 gasoline but if that step wasn’t taken you’d get diesel. Issue remains getting the sulfur out.

 

[hollywood8118]

KY you’re right currently more petrol than diesel is made per barrel. But in reading about it there’s some latitude in what the final products are. In the past that wasn’t true. Heavy v light did limit outcome. But apparently that hasn’t been true for awhile. Nor the length of the HC chain. In the US many refineries work to shorten the chain to get to C6-9 gasoline but if that step wasn’t taken you’d get diesel. Issue remains getting the sulfur out.

I believe the pricing situation is much less complicated than that.


Supply vs. Demand.


There is a very high demand for diesel due to the current fast paced economy, as such the price reflects that demand.
HW

 

[Hippocampus]

GNP throughout the world is decreasing. We are starting into a recession. The rest of the industrial world is already there. Supply is controlled by OPEC+. With Putin’s war supply has decreased more than demand has decreased. So on that level you’re correct. Add in the fall in refining capacity so supply fall is the major influence. However it’s not the “fast paced economy” but rather the artificially induced fall in supply.