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Refiners are facing constraints on the fuel they can produce, including lost Russian supply due to the war in Ukraine, pandemic-era refinery closures, and a surge in natural gas prices. Europe, which relies heavily on diesel, is especially exposed.
Reduced refining capacity and supply losses tighten diesel markets, pushing prices higher and raising distribution costs for feed.
reuters.comLaura SanicolaApr 21, 2022After 250 past bullish geopolitics events, ULSD / Diesel moved a median +1.7% over 5 sessions (58% higher; middle half -3.6% to +8.7%), and +0.9% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
Lost Russian supply, refinery closures and high natural gas prices constrain distillate output, especially in Europe, supporting diesel prices.
