Global diesel prices keep climbing up ahead of winter

The global diesel market is experiencing high prices compared to the crude oil used to produce it, raising concerns about scarcity and potential impacts on inflation and industries that rely on diesel. Despite the fact that prices have been high before, the current state of the market is worrying due to the ongoing supply constraints and upcoming winter demand.

Stockpiles of diesel-type fuel in Europe and the US Atlantic Coast are expected to decrease in the coming months, leading to tighter supply conditions. Refinery curbs and shifts in crude types have contributed to reduced diesel supplies. In Europe, lower diesel yields from lighter crude slates and unplanned refinery outages are contributing to the tight supply situation.

China is being closely watched as its refiners await new fuel export quotas from the government. While ample Chinese diesel flows could help ease supply constraints, analysts suggest that strong domestic diesel demand might limit the relief provided by exports.

In the US, retail diesel prices have been rising consistently, contributing more to inflation than gasoline in August. Market conditions have made stockpiling a losing venture for American refiners this summer, similar to last year.

The diesel market is significant beyond just a few traders, as diesel is a vital fuel for supply chains and various industries. Hedge funds are increasing their bullish bets on diesel, and the fuel’s availability and price shocks can have implications for governments and industries worldwide.

The current situation highlights the challenges faced by nations as they transition away from fossil fuels while still relying on oil refineries. Recent heatwaves have further impacted refinery output, contributing to the ongoing supply constraints in the diesel market.

Elevate your business with QU4TRO PRO!

Gain access to comprehensive analysis, in-depth reports and market trends.

Interested in learning more?

Sign up for Top Insights Today

Top Insights Today delivers the latest insights straight to your inbox.

You will get daily industry insights on

Oil & Gas, Rare Earths & Commodities, Mining & Metals, EVs & Battery Technology, ESG & Renewable Energy, AI & Semiconductors, Aerospace & Defense, Sanctions & Regulation, Business & Politics.

By clicking subscribe you agree to our privacy and cookie policy and terms and conditions of use.

Read more insights

Staggering debt levels signal decade of financial strain

Economists are issuing stark warnings about the looming global debt crisis, projecting that the next decade will be defined by this financial challenge. With worldwide borrowings reaching a staggering $307.4 trillion in September, both high-income nations and emerging markets are grappling…

Start Your Free Trial Today

🔑 Unlock the power of knowledge with QU4TRO PRO, your passport to unparalleled industry insights.

📈 Dive deep into data: Gain access to comprehensive analysis, in-depth reports, and market trends that will drive your business forward.

🌍 Global Vision: Stay one step ahead in today’s ever-evolving global market by tapping into our knowledge generated by network of industry experts and thought leaders.

📊 Data-Driven Decisions: Make strategic decisions with confidence, armed with the latest data and intelligence at your fingertips.

🤝 Exclusive Community: Join a community of forward-looking professionals who rely on QU4TRO PRO for their daily dose of industry knowledge.

✅ Don’t miss this opportunity! Subscribe now to QU4TRO PRO and position yourself at the forefront of your industry.

Weaker Q1 results for US and European oil companies as natural gas prices decline

The first quarter of this year saw weaker results for both U.S. and European oil companies, primarily due to a significant decline in natural gas prices compared to the same period last year. This decline contrasts with the record levels seen in 2022, which were driven by increased demand following the…

Stay informed

error: Content is protected !!