Middle East conflict and Russian refinery strikes tighten global diesel supply
Analysts warn Middle East conflict and Ukrainian strikes on Russian refineries have removed substantial processing capacity, threatening tight diesel supply and high prices for months amid diesel export bans.
Conflict in the Middle East and Ukrainian strikes on Russian refineries have removed a substantial amount of processing capacity, tightening the global diesel market and raising the risk of high prices and constrained supplies for months, analysts said. The strain has also prompted Moscow to impose diesel export bans. The gasoil benchmark has risen twice as much as Brent crude since the US-Iran war started. Nigeria’s Dangote crude refinery is running flat out as it seeks to maximize exports of diesel and jet fuel to Europe.
Its CEO told Bloomberg he was “extremely bullish” on margins over the medium term.