Global diesel shortage eases as inventories accumulate due to high refining margins and a slowdown in manufacturing and construction activity. The surge in fuel costs and rising interest rates led to a slowdown in these sectors, impacting benchmark crude prices and crack spreads. However, a mild winter is expected to further reduce heating demand, impacting distillate use. Despite this, inventories remain low, leading to high crack spreads. Any potential rebound in manufacturing and construction activity could quickly re-emerge tension in the distillate market.

Global Diesel Shortage Easing