The diesel market is in a perfect storm as prices surge, supply dwindles ahead of winter
An aerial view of Phillips 66 oil refinery is seen in Linden, New Jersey, United States on May 11, 2022.
Anadolu Agency | Anadolu Agency | Getty Images
A perfect storm is taking place in the diesel market, with dwindling diesel reserves, a drought on the Mississippi River pushing more product to rail and truck, and a possible rail strike leading to a surge in prices that is expected to continue.
Diesel prices have increased by 33% for November deliveries.
“The national average price for diesel today is $5.30 per gallon and is expected to go up 15 to 20 cents in the next few weeks,” said Andy Lipow, president of Lipow Oil Associates, LLC.
Reserves for diesel this time of year have not been this low since 1951, with the greatest shortfall in the Northeast region including New York and New England.
“This is not only constricting the ability of farmers to export the soybeans and grain they grow but also to receive the fuel and fertilizer they need to operate,” said Mike Steenhoek executive director of the Soy Transportation Coalition of the low water conditions that have turned the Mississippi River from a multi-lane interstate to a two-lane highway.
“Now adding insult to injury is the increased uncertainty that railroads will be able to provide an effective lifeline during this critical time. It’s a vivid reminder that it is not enough to produce a crop or have demand for that crop. Having a reliable supply chain that connects supply with demand is also essential for farmers to be successful,” Steenhoek said.
Two rail unions recently voted down a labor deal needed to avert a national strike in the coming months.
East Coast refineries operating at max capacity
Diesel inventories in the New York/New England markets are facing an acute crisis, down over 50% since last year and at the lowest level since 1990, according to Lipow.
Lipow said East Coast refineries are making as much diesel as they can and dependent on tankers and barges for supply, any weather delay causes a terminal to run out of product..
According to the EIA, East Coast refineries operated at 100% capacity in June and July.
“Last week, they operated at 102% of capacity,” Lipow said. “No more supply is forthcoming from the four East Coast refineries.”
New England’s diesel supply issues were made worse when a Canadian refinery in Newfoundland shut down in 2020 as the pandemic impacted on demand.
The Midwest is also seeing supply constraints, pushing up costs for farmers.
“In visiting with a number of farmers, the consensus, of course, is that diesel costs are one more incursion into profitability,” Steenhoek said. “As far as getting supplies, it looks like those areas most dependent upon the river are experiencing the biggest challenge. A couple of farmers told me diesel supply via their local vendor is day to day.”
Jones Act restrictions on foreign vessels
In order for the Northeast to receive more diesel, the fuel needs to be imported from another country or a tanker from the Gulf Coast, but that is not allowed because of the Jones Act, also known as the Merchant Marine Act of 1920, which prohibits a foreign vessel from transporting all goods between two U.S. ports.
“The Jones Act requires all cargo transported between U.S. ports be carried on ships that are U.S. flagged and built, and mostly owned and crewed by Americans,” said Captain Adil Ashiq, United States Western region executive for MarineTraffic.
According to MarineTraffic, the 56 Jones Act tankers are being used. One way to add more supply quickly is for the Department of Homeland Security to temporarily waive the act for foreign vessels to move the fuel. The Jones Act was last waived for a tanker filled with diesel from the Gulf to go to hurricane-stricken Puerto Rico where the energy was needed for power generators.
As a result of the small quantity of U.S.-owned and operated tankers available for energy transport, the price to book a Jones Act tanker is about double that of a foreign-flagged tanker. For example, a Jones Act tanker carrying 300,000 barrels of diesel from Houston to Boston costs approximately 16 cents per gallon. If the Jones Act was waived, a foreign flag tanker carrying the same amount of fuel and heading to the identical location is estimated to cost half, 8 cents per gallon. This 8-cent per gallon difference translates into a $1 million savings per tanker. This is one of the reasons why energy traders favor using foreign flag tankers versus Jones Act tankers.
“If the [Biden] administration wants to replenish New England gasoline or distillate inventories at the expense of exports, they need to waive the Jones Act for refined products loading on the Gulf Coast for delivery to New York, New Jersey, and New England,” Lipow said. “Unfortunately, I don’t think they will do it until it is too late.”
Traders profit, Russia ban looms
Traders are diverting tankers away from Europe to the U.S. because the price of U.S. diesel is now higher than in Europe so they can make a larger profit. So far, two tankers have arrived and unloaded.
According to MarineTraffic, the tanker Thundercat was originally destined for the Netherlands after being loaded in the Middle East with about 650,000 barrels (the equivalent of 27 million gallons) of diesel. It went to New York. Another tanker, Proteus Jessica, loaded in the Singapore area with a similar diesel supply also headed to New York.
For regions including New England, competition with Europe for diesel supplies will intensify next year when an EU ban on Russian refined product purchases is implemented, Lipow said. Diesel exports are of particular interest with the date of February 5, 2023, when the EU sanctions on Russian refined oil products begin, said BIMCO’s chief shipping analyst Niels Rasmussen, adding that 90% of the EU’s import volumes are diesel.
“The EU must replace on average 2 million tons of diesel imports from Russia,” Rasmussen said. “In addition, the International Energy Agency has estimated that the EU’s demand for refined products will increase by 300,000-500,000 barrels per day during winter to meet heating demands.”
The new CLA Shooting Brake is the first electric Mercedes vehicle available as an estate. It’s more spacious, more capable, and more high-tech than ever.
Meet the new Mercedes CLA Shooting Brake EV
Mercedes introduced the new CLA Shooting Brake on Tuesday, its first electric estate car. The Shooting Brake arrives as the second EV from the luxury brand’s new entry-level family of vehicles.
The electric wagon takes the best of the new CLA, which was revealed just a few weeks ago, and adds more space and capability.
It’s also bigger than the current CLA Shooting Brake, offering a more spacious interior. The new EV measures 4,723 mm in length, or 35 mm longer than the outgoing model.
With an extended wheelbase of 2,790 mm (+61 mm), the electric version offers 14 mm more headroom and 11 mm more legroom in the front. Rear passengers gain 7 mm of headroom but lose 6 mm of legroom compared to the current model.
Boot space is 455 L, which is 50 L more than the CLA sedan, but 30 L less than the outgoing Shooting Brake. However, it does include an added Frunk (front trunk) for an extra 101 L of storage space.
With all seats folded, overall storage space is 1,290 L. It also comes with standard roof rails, which Mercedes claims can easily fit surfboards or bicycles with a 75 kg (165 lbs) load capacity.
Inside, the new Shooting Brake is nearly identical to the CLA Sedan. It features the new Mercedes-Benz Operating System (MB.OS) with its fourth-gen infotainment.
The setup includes a 14″ infotainment and 10.25″ driver display screens. An extra 14″ passenger screen is available. A trim piece with star-pattern graphics replaces it if not. All three screens are powered by the latest-gen chips and graphics from Unity Game Engine.
Powered by the new Mercedes-Benz Modular Architecture and an 85 kWh battery, the new Shooting Brake EV offers up to 473 miles (761 km) WLTP range.
It will be available in single and dual-motor powertrains. The base CLA 250+ Shooting Brake has 268 hp (200 kW) output and a WLTP range of up to 473 miles (761 km). Meanwhile, the dual-motor CLA 350 4MATIC Shooting Brake has combined 349 hp (260 kW) and a range of up to 454 miles (730 km).
Based on its 800V architecture, the new electric estate can add 193 miles (310 km) WLTP driving range within 10 minutes. Mercedes said that should be plenty to get from Geneva to Milan or Berlin to Hamburg.
Mercedes will introduce new EV variants in early 2026, followed by a 1.5 L hybrid model. Prices will be revealed closer to launch, but it’s expected to start slightly higher than the current model. The current CLA Shooting Brake starts at around €40,000 ($46,500) in Europe.
Following the new CLA and CLA Shooting Brake, Mercedes-Benz plans to launch two SUVs. Check back soon for more info on the upcoming lineup.
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Rivian today announced a partnership with Google Maps on a new navigation system for its electric vehicles.
Rivian will continue to offer its own customized navigation interface on the 15.6-inch center touchscreen, but the underlying data is now powered by (the Automotive SDK from) Google Maps instead of third-party alternatives. Rivian cites customer feedback in making this change:
Instead of doing some small incremental improvements, we wanted to profoundly change our solution so that we make it the best navigation solution in the industry by combining strengths from both teams.
End users will benefit from fresh Google Maps traffic and “much better” routing (with improved ETAs and rerouting) information that includes crowd-sourced reports about construction, accidents, and other road disruptions. Rivian will also now show Google Maps satellite imagery in a sizable upgrade.
Rivian has already been using Google Maps for place information (hours, photos, ratings, etc.) and will now let you “tap on places of interest right on the map and learn more about hours, reviews, and contact information with just a tap.” More broadly, Rivian builds on top of Android Automotive OS and offers YouTube, as well as Google Cast.
Whether you’re about to embark on a long road trip or just trying to find the quickest way to run errands around town, navigation should be seamless, accurate and helpful.
Rivian owners will continue to have vehicle and condition-specific range EV estimates, as well as detailed information about charging stops.
Meanwhile, this Google Maps upgrade comes with a new design language that Rivian says “celebrates natural spaces in its topography and colors —from green parks to deep blue lakes and oceans.” There are also enhancements to “glanceability and easier access to information.”
These updates are also coming to the Rivian mobile app. Specifically, users can see traffic and traffic incidents, place photos/descriptions and satellite view (with a Connect+ subscription). Destination and trip sharing remains available.
Rivian Navigation with Google Maps is beginning to roll out today.
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People look at iPhones at the Apple Fifth Avenue store in New York City on May 23, 2025.
Adam Gray | Reuters
Apple and miner MP Materials announced a $500 million deal Tuesday for rare earth magnets and the development of a recycling facility that will reinforce the iPhone maker’s U.S. supply chain.
MP Materials stock climbed 23%. Shares of Apple were marginally higher.
As part of the agreement, Apple will buy rare earth magnets created at the company’s facility in Fort Worth, Texas. Both companies will combine on a new rare earth recycling line in Mountain Pass, California. MP Materials plans to start shipping magnets in 2027.
“American innovation drives everything we do at Apple, and we’re proud to deepen our investment in the U.S. economy,” said Apple CEO Tim Cook in a press release. “Rare earth materials are essential for making advanced technology, and this partnership will help strengthen the supply of these vital materials here in the United States.”.
Apple said the deal will create dozens of new manufacturing and research and development roles.
Rare earth magnets are key components that make up everything from consumer electronics such as smartphones and computers to cars and renewable energy systems.
For years, the U.S. has worked on curbing its reliance on China, which dominates the global rare earth elements supply chain. MP Materials operates the only rare earth mine in the U.S.
Earlier this month, the Department of Defense became the largest shareholder in the rare earth miner, buying $400 million in preferred stock to improve rare earth magnet supply on American soil.
Apple announced a plan to invest more than $500 billion to beef up U.S. manufacturing capabilities earlier this year. The plan included a new factory for artificial intelligence servers in Texas.
Shares of MP Materials have nearly quadrupled since the start of the year, pushing the miner’s market capitalization to nearly $10 billion. The stock has nearly doubled over the last month.
WATCH: Pentagon invests in MP Materials, guarantees floor price for rare earth minerals
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