U.S. Diesel Stocks Should Be Rising but Barrels Keep Leaving

U.S. diesel exports are running at seasonal highs as Europe replaces Russian supply and Houthi attacks disrupt Red Sea cargoes. Alex Hodes, StoneX Director Energy Market Strategy, explains why the U.S. has become Europe's marginal diesel seller and what that steady pull means for U.S. inventories heading into winter. Houthi attacks around the Red Sea have added friction to diesel shipments from Saudi Arabia's Yanbu port, leaving the U.S. Gulf Coast to fill more of the gap. The Gulf Coast to Europe arbitrage is still open, which keeps barrels flowing across the Atlantic and drives the large swings in U.S. export volumes. U.S. diesel inventories are already tight and have lagged their usual seasonal build, which puts the pace of exports through winter in focus. Price is the lever that decides whether diesel barrels sail for Europe or stay in the U.S. market, and diesel prices have recently retraced. 0:00 Europe Turns to U.S. Diesel 0:17 Houthi Risk Hits Red Sea Flows 1:11 Gulf Arbitrage Stays Open 1:30 Tight U.S. Stocks Into Winter 2:22 Diesel Prices Retrace 2:41 The Pull on Gulf Coast Barrels Discover Actionable Energy Insights with StoneX Market Intelligence: https://shop.stonex.com/collections/energy?utm_source=youtube&utm_medium=social&utm_campaign=sxtv_guest_alex_hodes&utm_content=share Like and subscribe for more financial market insights. #Diesel #StoneX #AlexHodes #RedSea --------- Like this video? Subscribe and turn on notifications so you don't miss any videos from StoneX: https://www.youtube.com/@stonex_official Visit https://www.stonex.com/en/insights/thought-leadership/?utm_source=youtube&utm_medium=social for insights, perspectives and thought leadership from StoneX's global network of experts. Visit our website: https://www.stonex.com?utm_source=youtube&utm_medium=social