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Global diesel supply squeeze drives record refining margins
Global diesel supplies are facing a severe squeeze, driving refining margins to record levels and causing significant price volatility. Experts attribute the shortage to several geopolitical and structural factors, including tensions between the US and Iran, attacks on Russian refineries, and disruptions in Middle Eastern crude exports.
In Europe, the lack of refining capacity and reduced availability of medium distillates have pushed prices upward. In Bulgaria, diesel accounts for approximately 50% of fuel consumption, with the business sector being the primary consumer. Some local prices in Sofia have already reached nearly 1.90 euro per liter.
Financial markets are reacting to these supply constraints. Hedge funds have significantly reduced bearish positions and increased bullish bets on European diesel, reaching levels not seen since before the US-Iran conflict. Similar bullish trends are being observed in US diesel and gasoline markets as speculators anticipate continued price strength.
Entities
Abaxx Markets · Association of Traders, Producers, Importers and Carriers of Fuels · Bloomberg · Commodity Futures Trading Commission · Goldman Sachs · ICE Futures Europe · Jefferies
Claims
What the coverage asserts, and how many sources carry each claim.
- [○ 1 SOURCE] Hedge funds have increased bullish bets on European diesel to their highest level since before the US-Iran conflict. www.hedgeweek.com
- [○ 1 SOURCE] Short-only positions in European gasoil reached a two-year low. www.hedgeweek.com
- [○ 1 SOURCE] Refining margins in the US have reached approximately 100 dollars per barrel. www.iskra.bg
- [○ 1 SOURCE] The crack spread between crude oil and diesel has reached a six-year high. ruse.news
- [○ 1 SOURCE] Global diesel fuel shortages are being driven by US-Iran relations and attacks on Russian refineries. ruse.news