Goldman Sachs: Diesel Crunch Is Now the Biggest Threat in Oil Markets

The biggest oil supply squeeze is currently in diesel markets amid the lowest global refining activity for this time of year since the 2020 pandemic, Goldman Sachs says.

War-induced refinery outages in the Middle East and Russia have collapsed global fuel supply, especially of diesel, while increased output in the Americas and Africa has managed to offset only about a third of lost supply, Goldman’s commodity analysts wrote in a note carried by Bloomberg.