Free Trial

US Manufacturing Boost could Stretch Diesel Supplies

OIL PRODUCTS

US manufacturers reported business activity is likely nearing its nadir and will likely return to growth in the next few months, stretching diesel supplies, according to Reuters.

  • A revival of manufacturing growth would boost industrial energy consumption, particularly for diesel, which is suffering from low inventories.
  • Distillate consumption is closely correlated with the industrial cycle. Hence, an uptick would deplete stocks further. Diesel inventories have not seen significant builds during the slowdown in manufacturing, so a boost in industrial demand could also cause prices to surge.
  • At the end of September, US diesel stocks were around 14%, or 19m bbl, below the previous 10-year average.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.