U.S. Diesel Supply Tightens As Manufacturing Comes Roaring Back

By Charles Kennedy – Oilprice.com

U.S. manufacturers are recovering from an extended slump in activity and their energy consumption is about to start rising, with the risk of tightening an already tight diesel market.

Reuters market analyst John Kemp reported the index for manufacturing activity had improved to 49.1 for January from 47.1 in December. The latter figure was the highest since October 2022, Kemp noted in his report, adding that the trend signaled a return to growth.

As manufacturing activity improves, however, diesel demand begins to increase in lockstep.