- There is a severe diesel shortage in the United States, and this is raising concerns about inflation and food supply.
- Higher fuel prices mean higher delivery costs, which could translate into higher prices for consumers.
- Here’s what Robert Kiyosaki and 5 other top experts think the diesel crisis means for Americans.
A shortage of diesel in the United States has raised alarm bells for many experts, who point to rising commodity prices and risks to food supplies as truckers pay more for fuel.
Diesel stocks have fallen well below emergency levels, and EIA data showed the US had just 25 days of diesel supply left on reserve three weeks ago – a low not seen since 2008.
The reason? Refiners slowed their refining when the pandemic hit consumer demand, but truckers continued to buy at high levels while continuing to make deliveries.
Diesel is used in freight transport, and a tight supply could mean less food and other goods hitting supermarket shelves, and higher delivery costs translating into higher prices for consumers. This could worsen already high inflation.
Shipping isn’t the only thing threatened by a diesel shortage. Heavy users like the construction and agriculture industries are also at risk.
But not all observers believe Americans are definitely headed for a diesel crisis – some say it’s business as usual.
Here’s what 6 experts warn about dwindling diesel supply.
Robert Kiyosaki, author of “Rich Dad, Poor Dad”
Kiyosaki tweeted about the risks to the food supply of a diesel shortage, and returned to touting tuna as a good investment.
“Years ago I suggested investing in cans of tuna. Why? Because tuna is a by-product of diesel,” he said.
“TuckerCarlson just reported that the diesel supplies are gone. I went to Safeway to buy 5 cans of tuna for $1. Fill up. Next lines not at gas stations. Next lines at grocery stores. Diesel feeds the world.”
Patrick De Haan, Head of Petroleum Analysis at GasBuddy
“Before the holidays, it’s going to be something that keeps commodity prices higher,” GasBuddy’s De Haan told CBS News, referring to diesel at $5.30 a gallon.
“Consumers won’t feel it when they fill up on gas, but when they buy for the holidays, the cost of goods will be higher. That will contribute to some level of inflation,” he said. added, noting that Amazon shifted to flying more planes and raised the price of Prime membership at the same time.
But the gas expert pushed back on suggestions that the 25 days of diesel inventory means US diesel supplies will dry up.
“What is the number that SAY if not how many DAYS we have? It means the market is tight and challenged, and it demands attention. Again, this DOES NOT SIGNAL that we will definitely miss in x days,” he said. tweeted.
Tom Kloza, Global Head of Energy Analytics at Opis
“The public is apoplectic when gas goes up, but diesel has incredible impacts on inflation in the form of freight charges and surcharges,” Kloza told USA Today.
“By the end of November, if we don’t do inventories, the wolf will be out the door. And it will look like a big ugly wolf if it’s a cold winter,” he added.
Mazen Danaf, senior economist at Uber Freight
“While many hoped that easing supply chain constraints would help bring inflation under control, it hasn’t had the desired effect due to high fuel costs,” Danaf told Newsweek.
The impact “is certainly being felt by end consumers, as shipping costs have been a major driver of inflation over the past year,” he said.
Mike Steenhoek, Executive Director of the Soy Transportation Coalition
“Visiting a number of farmers, the consensus, of course, is that diesel costs are one more foray into profitability,” Steenhoek told CNBC.
“In terms of supply, it seems that the areas most dependent on the river are experiencing the greatest challenge. A few farmers told me that the supply of diesel through their local supplier was daily,” he said. he declares.
Ed Hirs, professor of energy economics at the University of Houston
Hirs suggested there was no reason to panic about low diesel supplies in the United States, as reserves are replenished on an ongoing basis.
“Diesel and gasoline stocks are below five-year averages, and if the whole world shut down we would have 25 days worth of diesel. But the world is not shutting down. stops,” Hirs told CBS MoneyWatch.
“Your grocery store may have three days’ worth of milk. That’s because they only have three days’ worth of milk at any given time. But the cow keeps milking, the farmer keeps sending milk, the dairy continues to deliver,” he said.