Morgan Stanley pointed out that due to the simultaneous emergence of a series of major supply challenges, Europe is facing a tight diesel supply situation. Refining profits in the region have reached a record high, while inventories continue to decline. “The current situation is indeed very tense,” analysts including Martin Ratz said in a July 19 report. “Our supply and demand model shows that European diesel inventories will fall to their lowest level in many years by the end of the year.” “The real bottleneck in the current petroleum system is refining, not crude oil,” the analyst said. They pointed out that some African oil goods have not yet been sold, and forward prices in some regions of the market are showing a bearish trend. “At the center of it all is the diesel market, and Europe in particular.”

Morgan Stanley pointed out that due to the simultaneous emergence of a series of major supply challenges, Europe is facing a tight diesel supply situation. Refining profits in the region have reached a record high, while inventories continue to decline. “The current situation is indeed very tense,” analysts including Martin Ratz said in a July 19 report. “Our supply and demand model shows that European diesel inventories will fall to their lowest level in many years by the end of the year.” “The real bottleneck in the current petroleum system is refining, not crude oil,” the analyst said. They pointed out that some African oil goods have not yet been sold, and forward prices in some regions of the market are showing a bearish trend. “At the center of it all is the diesel market, and Europe in particular.”