Bloomberg Surveillance · Thursday, August 13, 2026
Francisco Blanche warned that distillate inventories, including diesel and jet fuel, are nearing depletion, with only one to two months of supply remaining. He suggested that this could lead to extreme price volatility and the necessity of demand rationing to balance the market.
“Well, so we can play that game for a little longer, but we're getting close to the end of the rope. I think for thislts to Tom's question, i e. Diesel and jet fuel. We are almost there. We got a month two months before we run out of rope, and then what happens?”
“Well, then what we are saying happens in a more extreme, magnified way. It's just shown in price, shown in price, and you need the demand rationing.”
“You need a lot of volatility, Tom, that's what needs to happen. You have very sharp movements up and down in the price to force people out or maybe to create I don't know. Maybe we had Spirit Airlines earlier in the year. Maybe we have another couple of airlines or truck companies.”