US Diesel Traders Turn to Rail as War Scrambles Fuel Flows
A driver refuels a tractor trailer with diesel fuel at a truck stop in Tracy, California.
Photographer: David Paul Morris/BloombergDemand for shipping diesel by rail within the United States surged in March, another sign of how the war in Iran has disrupted trading patterns and left the world scrambling for the vital fuel.
Shipping refined oil products by rail is typically a more expensive option than sending it by pipeline. But the war in the Middle East and the virtual closure of the Strait of Hormuz is depriving the market of hundreds of millions of barrels of crude and refined fuels. Global demand for US products is climbing to try and fill some of the void and the country appears poised to set a record for weekly diesel exports this week, according to data from energy analytics firm Vortexa.