Goldman Sachs Warns of Diesel Supply Shortage Amid Decline in Global Refinery Activity
Goldman Sachs has identified diesel as the biggest supply risk in global oil markets, citing a significant drop in global refinery activity. In July, refinery operations reached their lowest seasonal level since the pandemic in 2020. The decline is attributed to reduced crude processing and maintenance shutdowns across key regions. The firm highlights that this weakness could lead to tighter diesel supplies than expected, especially as demand remains resilient or even grows due to economic activity and seasonal factors like heating oil needs in Europe. This imbalance may result in higher prices for diesel compared to other refined products such as gasoline or crude oil itself. Goldman Sachs' analysis underscores the fragility of current energy markets amid ongoing geopolitical tensions and supply chain disruptions, suggesting that market participants should monitor refinery output closely.
Tickers: $GS
Topics: Diesel shortage Global refinery output Supply squeeze