U.S. Diesel Supplies Fall to 28-Day Coverage, Lowest Since 2003

According to Goldman Sachs, U.S. diesel inventory has fallen to 28 days of supply coverage as of late May 2026, the lowest level since 2003. If commercial crude inventories continue declining at recent rates while the Strait of Hormuz remains largely closed, diesel stocks could drop to just 20 days of coverage by August. The Energy Information Administration data showed diesel supply fell from 36 days in late January to 28 days as of May 22.

The decline stems from geopolitical tensions disrupting oil shipments through the Strait of Hormuz, which has virtually halted transportation from Persian Gulf producers, forcing millions of barrels of production offline. While U.S. refineries have drawn down inventories to partially offset this gap, sustained closure of the waterway could worsen supply pressures.