The World Is Struggling to Make Enough Diesel
- Crude production cuts have been detrimental to diesel supply
- Refineries have sought to satisfy demand surge for other fuels
The PCK Schwedt oil refinery iin Schwedt, Germany.
Photographer: Krisztian Bocsi/BloombergThis article is for subscribers only.
The world’s oil refiners are proving powerless to make enough diesel, opening a new inflationary front and depriving economies of a fuel that powers industry and transport alike.
While oil futures are rocketing — on Friday they were just below $95 a barrel in London — the rally pales in comparison with the surge in diesel. US prices jumped above $140 to the highest ever for this time of year on Thursday. Europe’s equivalent soared 60% since summer.