US Diesel Supplies Hit 40-Year Low Amid Russia-Ukraine Escalation

United States diesel supplies have dropped to 103.4 million barrels, the lowest seasonal level since the early 1980s. This shortage occurs as global demand typically peaks in October for harvests and winter heating, threatening to increase retail prices that already exceed $5.60 per gallon. The crisis is driven by the US-Iran war, which has nearly stopped refined fuel exports through the Strait of Hormuz, and the decision by the Federal Government of Russia to suspend diesel exports following Ukrainian drone attacks on Russian refineries.

Russia is now preparing to escalate conventional ballistic missile attacks on Kyiv and other Ukrainian infrastructure after concluding that peace negotiations have failed. Kremlin sources indicate some officials believe President Vladimir Putin may consider tactical nuclear weapons as a last resort. While US diplomacy has stalled, CIA Director John Ratcliffe recently visited Moscow for talks. President Putin is scheduled to meet with the leaders of China and India at the Shanghai Cooperation Organization summit in Kyrgyzstan next week.