U.S. diesel prices climbed to $6.28 a gallon, the highest ever recorded for early November, as domestic distillate inventories fell approximately 15 million barrels below the typical seasonal norm of 114 million barrels. The shortage is most acute in the Midwest, where stocks reached their lowest level since November 2014 just as the agricultural harvest peak coincides with the start of the heating oil season in the Northeast.
The Energy Information Administration reported that distillate stockpiles fell by 3.6 million barrels in the week ending Oct 30, more than double the expected draw of 1.5 million. The deficit has been worsened by high exports as U.S. refineries process 17.05 million barrels a day at a 94.5% utilization rate to fill global gaps caused by shipping disruptions in the Strait of Hormuz and drone strikes on Russian refineries. Total petroleum inventories, excluding strategic reserves, fell by 8.2 million barrels over the same period.