President Biden wants gasoline companies to keep a minimum amount of diesel in stock this winter to minimize shortages and price spikes. Bloomberg says it could boost demand and increase already high costs.
The idea would require diesel sellers to remove supplies from the market, which might increase diesel demand and prices in the Northeast, where fuel shortages are acute. Due to limited pipeline capacity, Russia’s invasion of Ukraine has exacerbated East Coast petroleum shortages.
This administration lives in university classrooms, creating hypothetical academic exercises because they do not look like they know how the real world works.
“We also want to make sure there’s enough fuel in the United States,” Energy Secretary Jennifer Granholm said when asked about U.S. fuel exports to energy-starved Europe during an interview at the COP27 climate conference in Egypt. “It may not be a business choice that they make, but we’re asking, as the companies that are operating in America, to do what they are doing in other countries.”
Diesel costs $5.31 per gallon, which is $1.58 more than in November 2021. Bloomberg reports that Midwest wholesale diesel prices soared in July after pipeline operator Magellan Midstream Partners increased fuel inventory minimums.
According to a European Council press release, the EU requires its member-states to fill natural gas storages to 80% of capacity. Europe relies largely on US oil and gas imports because Russia has interrupted Nord Stream 1 natural gas delivery in response to EU sanctions.
VISIT OUR YOUTUBE CHANNELAccording to the EIA, Americans who heat with heating oil (a kind of diesel) would spend $2,354 this winter, a 27% increase over the 2021 winter and the highest price in more than 25 years.
If you didn’t believe these people were incompetent you would think they are doing it intentionally.
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