VW Crisis Signals Shift for Europe's Diesel-Focused Oil Industry
- Scandal may jeopardize period of rising demand for fuel
- Could help fortunes of Europe's gasoline-oriented refiners
Volkswagen's Brand: How Damaging Is the Scandal?
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If European oil-market analysts have a single takeout from Volkswagen AG’s emissions cheating, it’s that the scandal is probably long-term bearish for the diesel market.
Europe’s refineries have been shifting for decades toward greater output of diesel to mirror alterations to the continent’s car fleet. As they have done so, imports have also surged, causing an ever-expanding glut to build up, while the fuel itself is under growing scrutiny for risks it may pose to public health.