Supply Chain Optimization

Controversy in warehousing + Fewer refineries = higher diesel - T|WO

Written by Tom Moore | Jun 1, 2022 5:00:00 AM

Expect controversy and some great tips from veterans Jeff Potts and yours truly.

15-minute webinar on June 9th. 1 PM CST 

Registration: https://new.elasticwebcast.com/user/registration/theme_04/index.php?videocast=NDY0.

Diesel prices are up because: 

  • Demand up (not including China restarting) 
  • Stocks down
  • Refinery utilization down
  • Number of operating refineries is down
    • With $1 billion in hurricane damage, Phillips 66’s shut its Alliance refinery in Louisiana, 
    • Consultant projection: by the end of 2023, as much as an additional 1.7 million barrels of U.S. refining capacity is expected to close
    • Some refineries are converting to biofuels e.g., Phillips 66 in Rodeo CA (San Francisco)
  • Refiners’ margins are way up

Refineries closing despite being so profitable:

  • Huge investments
  • War of fossil fuels 

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