Bloomberg: World's Most-Crucial Fuel Heads for Shortage Touching Everything
(Bloomberg) -- No fuel is more essential to the global economy than diesel. It powers trucks, buses, ships and trains. It drives machinery for construction, manufacturing and farming. It’s burned for heating homes. And with the high price of natural gas, in some places it’s also being used to generate power.
Within the next few months, almost every region on the planet will face the danger of a diesel shortage at a time when supply crunches in nearly all the world’s energy markets have worsened inflation and stifled growth.
The toll could be enormous, feeding through into everything from the price of a Thanksgiving turkey to consumer bills for heating homes this winter. In the US alone, the surging diesel cost will mean a $100 billion hit to the economy, according to Mark Finley, an energy fellow at Rice University's Baker Institute of Public Policy.
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WNU Editor: Europe is imposing its Russian oil embargo on December 5. It currently imports 500,000 barrels of diesel from Russia, and that supply will need to be replaced elsewhere.
Before sanctions the U.S. imported Russia diesel when the U.S. east coast experienced cold snaps during winter. No more now. US suppliers will be competing with European suppliers for diesel.
It is not hard to predict that diesel prices are going to remain high for the foreseeable future.
And as for developing countries that do not have the financial resources to outbid Western buyers for diesel. They have been priced out.
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