Diesel Shortage This Winter to Push Fuel Prices Higher, Goldman Warns
- Diesel markets resist policy efforts to tame energy inflation
- Goldman revises retail fuel prices for next year higher
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Diesel appears scarce heading into the northern hemisphere’s winter and will push fuel prices higher, bedeviling policymakers who are focusing on crude to tame energy inflation, warned Goldman Sachs Group in a note to clients.
Underinvestment in the nation’s fuelmaking capacity, exacerbated by refinery closures and disruptions, is leading to a shortage of refined products, especially diesel, whose stocks are at “unprecedentedly low levels,” said the bank. Goldman sees an “incredibly challenging” first quarter as the Group of 7 embargo on Russian products goes into effect.