Diesel pricing in Europe
Where next in Europe’s diesel crisis?
The fate of the continent’s supply crunch may lie elsewhere—in China, the Middle East and Russia
Europe’s diesel deficit has provided the only credible challenger to gas as the centrepiece of the continent’s energy crisis this year. Northwest Europe diesel cracks averaged $9/bl in 2021 and have averaged $40/bl so far this year—an increase of 420pc. But what has been driving the rally? And what is the outlook for European diesel pricing into 2023? Global capacity In a letter to his country’s oil executives this summer, US president Joe Biden warned the tightness in the world’s refining capacity was a “global challenge and global concern”. Biden’s words reflected the fact that c.3.5mn bl/d of distillation capacity had been shut down since the pandemic, resulting in a net decline after new
Also in this section
8 December 2025
The Caribbean country’s role in the global oil market is significantly diminished, but disruptions caused by outright conflict would still have implications for US Gulf Coast refineries
5 December 2025
Mistaken assumptions around an oil bull run that never happened are a warning over the talk of a supply glut
4 December 2025
Time is running out for Lukoil and Rosneft to divest international assets that will be mostly rendered useless to them when the US sanctions deadline arrives in mid-December
3 December 2025
Aramco’s pursuit of $30b in US gas partnerships marks a strategic pivot. The US gains capital and certainty; Saudi Arabia gains access, flexibility and a new export future
