World diesel fuel stocks are at historically low levels today. This adds to experts’ fears against the backdrop of the upcoming warming season in the Northern Hemisphere, which has traditionally led to an increase in fuel demand. It has been reported Bloomberg.
According to analysts, the current level of stocks may not be enough to meet the needs of the economy in the coming winter months. Any interruption on the supply side or an unexpected increase in demand could quickly drive up the price of this critical energy commodity.
“We need to build up the stocks now, as they usually start to drop seasonally from September on,” said Eugene Lindell, head of petroleum products at FGE industry advisory.
The situation is particularly tense in Europe and on the Atlantic coast of the United States. Wood Mackenzie predicts that diesel stocks in NW Europe will decline in the coming months. While this is typical of the period, the current reserve level is below historical norms.
The situation is exacerbated as refineries switch to lighter oil grades, leading to a reduction in diesel fuel output. Jet fuel production, which is rapidly recovering after the pandemic, is also increasing.
The increase in diesel prices in the USA since July affects inflation more than gasoline. US refineries were unable to increase their stocks during the summer due to unprofitable storage.
Diesel supplier to Canadian Irving refinery New England will make scheduled repairs for 7 weeks from September. This will further complicate the situation in the region. Analysts point out that even the introduction of new quotas for fuel exports by China is unlikely to radically improve the situation. Despite the problems in the construction industry, domestic demand from China was higher than expected.
Thus, the world economy approached the historical minimum level in diesel fuel stocks on the eve of the winter season. This is fraught with price shocks for any disruption to supply chains in the coming months.
At the end of last week, it was learned that Brazil was. it happened The second largest buyer of Russian diesel.
Previously, the price of diesel in Russia reached new historic summit