Concern over diesel prices is beginning to rise in the market even as there are some indicators that may signal some moderation.
The tight diesel market and the fact that inventories “days cover” is down to less than 26 — an extremely low number but one that does not mean “we are going to run out of diesel in 25 days” — has led to a significant overreaction in much of the discourse about diesel supply.
On Monday, a tweet of a highway sign in Pennsylvania noting that a nearby rest stop was out of diesel was widely circulated as evidence the market was in full-blown crisis. But as GasBuddy reported, the issue was a technical one at that stop. After the technology problem was fixed, diesel sales resumed.
