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TLDR; the current high diesel prices are fundamentally the result of demand outpacing supply, as of the posting of this blog. There are four primary drivers of this imbalance.

Oil markets are famously sensitive to uncertainty. Global conflict can send prices higher on concerns that crude oil supplies could be disrupted. This is playing out in response to Russia’s unprovoked acts of war against Ukraine. Russia is a major supplier of crude oil and other energy products globally, though less so in the United States. In recent days, many market participants have committed to stop purchasing Russian oil. Shipping companies are concerned about loading cargoes from Russia and some shippers are finding the cost associated with such cargoes too high. These moves are tightening an already tight market.

To produce essential goods for U.S. and global consumers, AFPM members need a safe, reliable and efficient rail system to move materials to and from refineries and petrochemical facilities.

American Fuel & Petrochemical Manufacturers CEO Chet Thompson today issued the following statement on the Biden administration’s announcement that it plans to invoke emergency waiver authority under the Clean Air Act to allow for the incremental sale of E15 fuel this summer.

For women’s history month, we’re honoring female innovators who’s contributions have made modern life possible for millions of Americans.

The U.S. refining industry is the most competitive in the world, which is a benefit to American households. Our complex facilities are uniquely suited to handle difficult-to-refine crude oil and other petroleum feedstocks that refineries elsewhere cannot process. This creates competitive advantage. At the same time, the United States is able to sell some of our higher-quality crude to countries that need it. This combination is powerful.

Russian crude oil accounts for just three percent of U.S. crude oil imports and about one percent of total crude oil processed by U.S. refineries. Even still, Russian crude oil imports are important to refineries on the West Coast and Gulf Coast for some distinct reasons. Read more on this topic from AFPM’s industry analysts in their recent assessment: “U.S. Imports of Crude Oil and Petroleum Products from Russia.”

In a series of comments submitted recently to EPA, leading labor groups made the case to President Biden and EPA Administrator Michael Regan for reductions to the proposed 2022 Renewable Fuel Standard (RFS) volume mandate. An unachievable and costly RFS is a threat to good union jobs.