NASHVILLE, TN – U.S. distillate inventories continue to tighten ahead of the fall harvest, keeping diesel costs a concern for farmers and rural businesses. Energy Information Administration data show distillate stocks fell again in mid-August and remain about 13% below the five-year average.
Crude oil supplies are less concerning. Commercial crude inventories increased during the week and remain near normal seasonal levels, while refineries operated at roughly 97% of capacity.
That distinction matters because diesel is only one of several products refiners make from crude oil. Strong diesel crack spreads — the difference between crude costs and the value of refined diesel — signal particularly strong demand or tight supply for the finished fuel.
Farmers face that pressure as harvest, trucking and machinery use increase. National retail diesel averaged about $5.45 per gallon in mid-August, substantially above year-ago levels.
Crude availability may remain adequate, but tight distillate inventories leave less cushion if agricultural and freight demand strengthen through harvest.
Farm-Level Takeaway: Tight diesel supplies could keep fuel costs elevated even with adequate crude oil inventories.