State police had been alerted to watch for the motor home, and officers in Tucumcari spotted it that evening, out of fuel on a side street. A snowstorm and a backup of tractor-trailers had made diesel fuel hard to come by in the eastern New Mexico community.
SoothSayer wrote:I feel that car fuel and plane fuel usage will be cut back somewhat by higher crude prices.
However diesel fuel used by trucks may be less easy to cut back on:
Trucks = The economy
Can refineries selectively produce diesel to keep the trucks running?
Will the trucking fleets be the first to get hit badly by high prices and/or shortages?
Alfred Tennyson wrote:We are not now that strength which in old days
Moved earth and heaven, that which we are, we are;
One equal temper of heroic hearts,
Made weak by time and fate, but strong in will
To strive, to seek, to find, and not to yield.
highlander wrote: Agent R is correct.
NeoPeasant wrote:NonToxic wrote:Does anyone know why the price of diesel is more than super in some places?
Because of goobers in giant noisy stinky 4 wheel drive diesel pickup trucks hauling nothing but their own fat asses around?
The evidence is mounting that the U.S. might just encounter the first real crisis of the oil depletion age before the year is out.
The crisis at first will be one of spiraling prices for diesel and heating oil, followed by actual shortages here in the United States. In the last two weeks, the wholesale price of heating oil has moved up by nearly 70 cents a gallon and no end is in sight. Many observers are starting to note that what they call “a tight market for distillates” –- the industry’s term for diesel and heating oil – may be what is driving up the price of crude and consequently gasoline.
The reasons for this surge in distillate prices are easy to understand. Conventional oil production, from which distillates are made, has been flat for the last three years while demand from Asia and the Middle East oil producers has been rising rapidly. The trend into higher-mileage diesel powered cars in Europe and other places, which has been underway for many years, is having a major impact. In some European countries, diesels now account for over 70 percent of new car registrations. This change in demand is leaving Europe and a few Asian refiners with a surplus of gasoline but not diesel. The overseas refiners are happy to sell their surplus gasoline to America which still wants prodigious quantities of the stuff. This, believe it or not, helps keep gasoline prices lower than the price of crude suggests it should be, as unusual quantities of gasoline keep arriving at our shores.
Prices for distillates went up and up and inventories went down and down as we are no longer making enough to satisfy the demand even at outrageous prices, and our imports of finished distillates began to drop as everybody in the world wants the stuff. Imports which were running 300-400,000 barrels a day early last year have been about 200,000 barrels a day(b/d) or less in recent weeks. Most of our distillate imports are coming from Canada as nobody else seems willing to sell us this increasingly valuable commodity.
Refiners Tilt to Diesel Over Gasoline
By Ana Campoy
U.S. refiners by now would be moving full-speed to ramp up gasoline production in advance of the summer driving season, but instead they are trying to maximize output of more-profitable diesel fuel.
The global hunger for diesel, coupled with tight refining capacity, has made diesel one of the few bright spots in the refining business, catapulting prices higher than a parallel rise in gasoline.
Diesel prices were up an additional 18.2 cents last week to a record $4.33 a gallon, a 56% increase over the price at this time last year. Gasoline is climbing, too, but less dramatically.
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