(Bloomberg) — At any other time in history, the current state of the global diesel market would have sent some countries into a panic.
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All over the world, prices for the fuel are sky-high relative to the crude oil from which it is made, pointing to a scarcity that should alarm inflation-obsessed governments everywhere. And within just a few months, the Northern Hemisphere will enter winter, pushing up demand for heating.
The good news is that the market looked even worse this time last year following Russia’s invasion of Ukraine — and prices ultimately came down, helped by a relatively mild winter. However, today’s shriveled stockpiles mean the world can ill afford any bullish market surprises: supply curbs can arise at any time, or demand shocks can come from cold weather or surprisingly strong economies.
“We should be building stocks now as they usually begin drawing seasonally from September,” said Eugene Lindell, head of refined products at…
2023-08-19 20:00:00
Source from finance.yahoo.com
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