Goldman Warns of August Diesel Shortage as US Inventories Hit 2003 Lows
Goldman Sachs directly forecasts a diesel supply crunch in August, with US diesel stocks at the lowest since 2003. Low inventories typically precede sharp price spikes as demand outpaces supply, making ULSD bullish.
- ▲ Goldman Sachs report forecasting August diesel crunch
- ▲ US diesel inventories at lowest since 2003
- ▼ Economic slowdown cutting diesel demand
- ▼ Strategic Petroleum Reserve releases or policy interventions boosting supply
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What is ULSD and why is it affected?
ULSD (Ultra Low Sulfur Diesel) is the benchmark US diesel futures contract. Goldman's forecast of an August shortage puts upward pressure on futures prices as traders anticipate supply falling short of demand.
How high could diesel prices go?
Based on historical inventory levels and seasonal demand, analysts warn of a potential double-digit percentage spike if the supply crunch materializes, but precise price targets depend on refinery output and demand elasticity.
Should investors buy ULSD now?
The bullish outlook suggests potential upside, but risks include a demand slowdown or unexpected supply increases. Investors should monitor inventory data and refinery utilization rates.