Key events8m agoDiesel supply squeeze could hit Europe, Morgan Stanley warns23m agoIntroduction: Oil rises above $90 as Middle East conflict escalatesDiesel supply squeeze could hit Europe, Morgan Stanley warnsEurope faces a squeeze on its diesel supply this year, according to analysts at the bank Morgan Stanley, with stockpiles expected to decline over the coming months.Analysts including Martijn Rats wrote in a note yesterday:
double quotation markThe picture is genuinely tight. Our supply/demand modeling points toward European diesel inventories falling to multi-year lows toward year-end.
…The real bottleneck in the oil system right now is refining, more so than crude…The epicenter of all this is the diesel market, and Europe in particular.
It comes as global energy markets grapple with the impact of renewed conflict in the Middle East.Morgan Stanley now expects that European stockpiles will fall steadily from August, reaching a low of about 299m barrels in November. That would be the lowest level for that time of year since at least 2015, according to their analysis, which was first reported by Bloomberg.Jim Reid of Deutsche Bank says the rapid rise in the oil price and fresh waves of strikes underscores “how quickly the situation is deteriorating”.
