Constrained diesel supplies could persist well into next year as large counter-seasonal stock drawdowns have combined with restricted production ahead of the peak winter demand season, the International Energy Agency said in its latest monthly oil market report.
Diesel refining margins, the fuel’s premium to underlying crude oil, soared to record highs of almost $95 per barrel in September, as reduced refining capacity due to attacks linked to the Iran war slashed production.
“Diesel markets remained under significant strain as prolonged supply disruptions forced counter-seasonal stock draws ahead of autumn refinery maintenance and peak winter demand,” the IEA said.
(Reporting by Robert Harvey in London, Editing by Tomasz Janowski)