Diesel in the money again
Fuel stocks are easing and margins rising, though the rally might be short
AFTER a lengthy diesel glut on both sides of the Atlantic and pressurised margins, fundamentals have finally started to improve for the road fuel. Refiners' profits are rising again. In Europe, the ultra-low sulphur diesel crack spread against Brent crude - the profit to be made by refiners - is now around $14 a barrel, according to pricing pricing-agency Platts. In early April it was just $8/b. Gradual stock draws and falling supplies are behind the rise in Europe and analysts expect the trend to continue. Profit share Margins for producing diesel on the US Gulf Coast are also forecast to keep strengthening, averaging $11/b next year compared with $9/b in 2016. Global diesel supplies rose b
Also in this section
14 April 2026
The GECF has warned it may revise its projections for demand this year downwards in light of conflict in the Middle East, although it maintains its forecasts for 2027 and onwards
13 April 2026
Petroleum Economist analysis highlights sharp shift from crude oversupply to market deficit, with Iraq and Kuwait badly affected and key producers Saudi Arabia and the UAE also seeing output sharply lower
13 April 2026
Turkmenistan is moving ahead with a modest expansion of the giant Galkynysh field to sustain gas deliveries abroad, but persistent delays to other key pipeline projects and geopolitical risks continue to constrain its export ambitions
13 April 2026
Expensive electricity has forced out swathes of energy-intensive industry and now threatens the country’s ability to attract future investment in datacentres and the digital economy
