(Bloomberg) -- The boost truck fuel demand is getting from booming consumer goods imports into California is spreading to the Rocky Mountains as the freight heads to the East Coast.
In a sign that another bright spot for diesel is emerging with the surge in U.S. online shopping, Magellan Midstream Partners LP is expanding a truck loading terminal in Wyoming to serve rising freight traffic on Interstate 80.
While the Covid-era trend to buy Asian goods from the laptop rather than drive to a store is bad news for local businesses, it's been a boon for diesel. Freight is booming at a time when refineries are closing because of the devastating impact lockdowns had on gasoline demand.
Capacity at the 300,000-barrel Cheyenne terminal drawing fuel from Rocky Mountains refineries will be expanded 50% by mid-2021, Magellan said in an emailed statement Wednesday.
Americans on a Buying Spree Give Battered Diesel Market a Lift
Freight moving east from the port at Oakland, California, and a distribution center at Stockton, California, have boosted diesel demand along the interstate, which links California and New Jersey, said Kyle Lintner, managing director of freight consultant K-Ratio.
“Magellan might be trying to capitalize on all of the eastbound trucks.” he said.
West Coast diesel stocks last week were at a seasonal 14-year low with trucking demand keeping a lid on stockpiles, Energy Information Administration data showed.
©2020 Bloomberg L.P.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
