Production cuts by Saudi Arabia and Russia have deprived the world of distillate-rich crudes
Markets facing distillate squeeze
Crude production cuts and refinery outages mean high prices are looming for heating oil and diesel this winter, and greater shale output will do little to help
The world is looking at another autumn and winter of high distillate prices, with the potential for the largest margins on record from October 2023 to March 2024. Were a major hurricane to shut down US Gulf Coast refineries, a difficult situation could turn into a catastrophe, with retail diesel consumers in certain areas paying more than $10/gal. A combination of factors have created this situation. Production cuts by Saudi Arabia and Russia have deprived the world of distillate-rich crudes, and US shale oil output is of little use because these light crudes lack a significant distillate ‘cut’. The shutdown of two North American East Coast refineries this autumn will also remove additional
Also in this section
3 December 2024
Papua New Guinea’s LNG sector appears to be back on track, with other projects in the pipeline
2 December 2024
Crucial role of gas means country is laying the foundations to control physical and trading supply chains
30 November 2024
Decades of turmoil have left Iraq’s vast energy potential underutilised, but renewed investment and strategic reforms are transforming it into a key player in the region
29 November 2024
Although Iraq remains a major crude exporter, it is still some way from becoming a regional energy supply hub. Ambitious new cross-border schemes aim to rectify that situation
