U.S. Diesel Demand Hits 26-Year Seasonal Low Amid Economic Slowdown

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U.S. Diesel Demand Hits 26-Year Seasonal Low Amid Economic Slowdown
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U.S. diesel demand fell to its lowest seasonal level in 26 years in March, driven by a significant slowdown in economic growth.

In March 2024, US diesel demand plummeted to its lowest seasonal level in 26 years, driven by a significant slowdown in economic growth. According to the US Energy Information Administration EIA , the product supplied of distillate fuel, essential for trucking, heating, and heavy industry, fell to 3.67 million barrels per day. This figure marks a downward revision from previous estimates, highlighting the severity of the economic deceleration.

'It's a function of the slowing economies in Asia and the US, and how inflation is tightening consumer spending habits,' Kissler told Bloomberg. 'People aren't spending money like they were a year ago.' A month ago, lukewarm demand for diesel and other distillates had traders scrambling to secure storage tanks on the U.S.

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