Swollen Diesel Stockpiles Threaten Oil Price Recovery
- Diesel profit margin slid to a 10-year low on Wednesday
- The glut is ultimately “bearish for crude oil prices”: Mizuho
Fuel storage tanks in Crockett, California.
Photographer: David Paul Morris/BloombergThis article is for subscribers only.
The oil market has a diesel problem and it’s not letting up.
While crude stockpiles in the U.S. are sitting at the lowest since April, supplies of distillates, which include diesel, heating oil and jet fuel, are continuing to swell and skyrocketed to the highest level for this time of year in U.S. government data going back to at least 1991. At the same time, demand for the fuel, often viewed as an economic barometer, is at the lowest since late July.