Global diesel supply will remain tight due to a lack of spare refining capacity, Russia's ban on exports and the approach of peak winter demand, senior industry executives said on Tuesday.
The wars in Ukraine and Iran have impacted refineries in Russia and the Middle East, pushing diesel margins to record levels in Europe and the US, while reducing crude supplies to Asia.
"There's really a shortage of products because we're missing two-million barrels a day from Russia, and we're missing nearly two-million barrels a day from the Middle East," Vitol CEO Russell Hardy told the APPEC conference on Tuesday.
Hardy said crude is in a better supply position than products as the Middle East is exporting about nine-million barrels a day of crude and one-million barrels a day of products.
"We're still not running enough refining capacity to prevent those draws," he said.
