WOQOD issues warnings about diesel shortage and says the situation is ‘evolving rapidly’

A major fuel supply and logistics company has raised a red flag about the upcoming diesel shortage.

Mansfield Energy issued the alert on Friday, citing diesel shortages in the southeastern region of the United States. The company speculated that the shortage could be due to “weak pipeline shipping economics” and a historically low supply of diesel reserves.

“Bad shipping economics in pipelines and historically low diesel stocks are combining to cause shortages in various markets across the Southeast,” the company said. “These have been happening sporadically, with areas like Tennessee experiencing particularly severe challenges.”

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Traffic passes through a gas station in Los Angeles, California, on October 19, 2022. High fuel prices threaten the American economy and are also fueling administration voter anger two weeks before the midterm elections to determine congressional control. (FREDERIC J. BROWN/AFP via Getty Images/Getty Images)

States expected to suffer severe effects from this deficiency include Maryland, Virginia, Alabama, Georgia, Tennessee, North Carolina and South Carolina.

Biden administration It says it is keeping a close eye on diesel stocks and is working to boost supplies, after news that the reserves were running out and could run out in less than a month if not replenished, sparking fears of price shortages and price hikes.

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The Energy Information Administration (EIA) reported this week that as of October 14, the United States had only 25 days of spare diesel supplies, a low level not seen since 2008. National Economic Council Director Brian Dees acknowledged to Bloomberg that the level is “significantly low.” unacceptable” and that “all options are on the table” to address the situation.

“As conditions change rapidly and market economics dramatically change every day, Mansfield is moving to Alert Level 4 to address market volatility,” Mansfield’s press release said.

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The company continued, “Mansfield is also moving Southeast to Code Reply, requesting 72 hours notice for delivery when possible to ensure fuel and freight are available at economical levels.”

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The Northeast Home Heating Oil (NEHHOR) reserves contain approximately 1 million barrels of home heating oil. House Democrats from New England are asking President Biden to release some of those reserves to help lower home heating prices in the region, leading into the winter months.

But experts say developing Home heating oil shortage It won’t go away anytime soon.

Brick Dumas of FOX Business contributed to this report.

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