Goldman Sachs Warns of Diesel Fuel Shortage in Global Market

Investment bank Goldman Sachs forecasts a worsening situation in the diesel fuel market due to conflicts in the Middle East and Russia's war against Ukraine, which have paralyzed refining operations. Increased attacks on oil refineries have limited global capacity, driving the margin for petroleum products to record levels. Disruptions at refineries exceed seasonal norms by 60%. The profit from producing a barrel of diesel fuel next year is expected to average $63 in the U.S. and $49 in the EU. The rise in petroleum product prices is outpacing the increase in crude oil prices, exacerbated by Russia's ban on diesel exports until September, rising demand in Brazil, and the approaching heating season in the Northern Hemisphere. Crude oil exports from the Persian Gulf have resumed to 70-80% of pre-war levels, but finished product supplies remain at 40%. Shell Plc CEO Wael Sawan highlighted the threat of attacks on Russian refineries and risks to shipping. To restore refining volumes, a reduction in geopolitical tensions is necessary. Russia has extended its ban on diesel exports until September 30 amid attacks on refineries.

This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.