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Europe diesel market faces tighter supplies as inventories near multi-year lows
Morgan Stanley projects European diesel inventories could drop to multi-year lows toward year-end, even as crude prices softened after the collapsed U.S.-Iran memorandum.
European diesel markets are expected to tighten further as multiple supply disruptions push inventories toward multi-year lows, according to analysts at Morgan Stanley, as carried by Bloomberg.
The bank’s supply and demand modeling points to inventories falling to multi-year lows toward year-end, the firm said in a note cited by Bloomberg.
Fuel market signals have contrasted with the decline in crude oil prices in late June and early July after a now-collapsed U.S.-Iran memorandum of understanding, as refining margins for gasoline and diesel rose earlier this month.
OilPrice reports that diesel refining margins in Europe jumped to a record high of over $60 per barrel following Russia’s ban on diesel exports, aimed at easing a domestic fuel crisis tied to Ukrainian drone attacks on Russian refineries.
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