NZ diesel stocks hit post-war low despite incoming reserve fuel

Summarised by Centrist

New Zealand’s diesel stocks have fallen to their lowest level since the outbreak of conflict in the Middle East, although the government says additional reserve fuel is now on its way.

Latest Ministry of Business, Innovation and Employment figures show diesel stocks at roughly 40 days’ supply, down from the previous low of just over 41 days recorded in April. Petrol stocks sit at just shy of 56 days and jet fuel at nearly 55 days.

The diesel figure does not include two government-backed reserve shipments currently travelling to New Zealand. The shipments, expected to arrive in mid-June and early July, represent about nine days of typical national diesel consumption.

Finance Minister Nicola Willis said the reserve would strengthen fuel security, while Associate Energy Minister Shane Jones said the Crown and Z Energy had agreed the company would manage the stocks, with ministers deciding when they could be used.

MBIE said fuel continued to flow into the country as expected and stock levels remained above minimum requirements.

According to the International Energy Agency, global crude shipments have fallen by more than 11 per cent since the conflict began, while countries worldwide have been drawing down commercial and strategic fuel reserves to meet demand.

Energy analysts told The Washington Post that inventories are falling fast enough that fuel prices could remain elevated even if shipping routes reopen soon, because it could take months to rebuild depleted stockpiles.

Read more over at 1Newsand The Washington Post

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