A major US diesel supplier issues a supply warning for the East Coast

A significant supplier of diesel fuel in the United States has issued a warning, advising companies to get ready for a scarcity on the East Coast.

Mansfield Energy claims that the East Coast fuel markets are experiencing difficulties with diesel supply as a result of “market economics and low inventory,” leading to high prices in the Northeast and intermittent shortages in the Southeast.

Mansfield put the Southeast supply in “Code Red” and issued a “Level 4” alert due to the rapidly deteriorating conditions, demanding a 72-hour notice for deliveries to maintain costs as low as possible.

The scarcity is anticipated to have a significant impact on North Carolina, South Carolina, Maryland, Virginia, Alabama, Georgia, and Tennessee.

Poor pipeline transportation economics and record low diesel inventories, the business continued, are probably to blame.

The corporation urged businesses to plan ahead rather than panic in a press release on Monday, stating that “a constrained fuel supply will drive prices to go higher, which will eventually make it too expensive for certain individuals. Demand will decrease again due to high pricing until it balances with the restricted supply.

According to Fox News Business, the East Coast markets typically have 50 million barrels in storage, but there are currently fewer than 25 million barrels accessible.

The United States has less than 25 days’ worth of reserve diesel as of October 21, according to the Energy Information Administration, a level not seen since 2008.

According to Mansfield, businesses that depend on diesel for operations won’t experience any supply disruptions at the corporate level even if consumers may feel the pinch at the pump.

“Retail customers shouldn’t anticipate seeing bags over the pumps at many gas stations. Although it may happen on rare occasions (and you’ll be sure to hear about it in the news when it does), retail stations typically find supply and continue to operate. The corporation said that higher prices will simply be passed along to customers.

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