The Energy Information Administration said that US diesel demand would climb to its highest since 2018 in 2022, driven by increased trucking activity to clear a shipping backlog accumulated during the COVID-19 pandemic. EIA noted that US diesel consumption has already exceeded the pre-pandemic levels and would rise by a further 3% to 4.11 million bpd next year.
Analysts said the expected higher diesel demand indicates that the supply chain logjam is not going to end any time soon. US diesel prices are expected to remain elevated in line with high oil prices and low inventories. EIA projects retail diesel prices to average at a seven-year high of $3.24 per gallon in 2021 before easing slightly to $3.23 per gallon in 2022. Analysts warned that higher trucking costs could be passed down to consumers, exacerbating concerns on inflation.
