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
22 November 2024
The Energy Transition Advancement Index highlights how the Kingdom can ease its oil dependency and catch up with peers Norway and UAE
21 November 2024
E&P company is charting its own course through the transition, with a highly focused natural gas portfolio, early action on its own emissions and the development of a major carbon storage project
21 November 2024
Maintaining a competitive edge means the transformation must maximise oil resources as well as make strategic moves with critical minerals
20 November 2024
The oil behemoth recognises the need to broaden its energy mix to reduce both environmental and economic risks
