26.05.202213:46 Forex Analysis & Reviews: Diesel shortage fears grow

The Energy Information Administration reported crude oil inventories in the country had shed 1 million barrels in the week.They now stand at 419.8 million barrels, 14% below the five-year average for this time of the year.

Last week's inventory change compared with a draw of 3.4 million barrels estimated for the previous week.

As for gasoline, the EIA reported a decline of 500,000 barrels for the week, with gasoline production averaging 9.4 million bpd.The week before, gasoline inventories shed 4.8 million barrels and production averaged 9.6 million barrels daily.

In middle distillates, the authority estimated an inventory increase of 1.8 million barrels. Production stood at an average of 5.1 million bpd.

This compared with an inventory build of 1.2 million barrels and a production rate of 4.9 million bpd a week earlier.

According to AAA, gasoline prices continued to hit all-time highs last week, reaching $4.598 per gallon on Tuesday. Diesel prices were lower, however, at $5.549 per gallon on Tuesday, down from $5.573 per gallon a week ago.

The diesel fuel situation in the US and other countries remains almost critical due to the tightness of available inventory. To quench concerns, the Biden administration announced it was considering a release from the emergency diesel reserve.

According to the Wall Street Journal, diesel fuel supplies are particularly tight on the East Coast. There, inventories have fallen to the lowest since at least 1990.

Crude oil prices are also staying higher as the supply and demand situation remains unchanged, even though worry about recession has served to limit the upside potential of benchmarks.

OPEC's de facto leader Saudi Arabia signaled once again it had no plans to boost production further, and the EU continued to discuss an oil embargo on Russia.

On Tuesday, CNBC quoted Secretary of Energy Jennifer Granholm as saying that the US was considering an export ban in an attempt to curb domestic fuel prices.