Global diesel supply is also facing a strain following shortages of oil, gas and coal, mainly because refinery capacity has not been able to keep up with the strong post-pandemic demand recovery, which has also made global energy short

Global diesel supply is also facing a strain following shortages of oil, gas and coal, mainly because refinery capacity has not been able to keep up with the strong post-pandemic demand recovery, which has also exacerbated the global energy shortage problem, which may further push up fuel prices and transportation costs, making it more difficult for central banks to deal with inflationary pressures.

Crude diesel (including diesel and heating oil) inventories in the refining and storage areas of Amsterdam, Rotterdam and Antwerp (ARA) in Europe fell by 2.5 percent last week, the lowest level in the same period in 2008, according to Dutch consultancy Insights Global, while onshore stocks of middle distillates in Singapore fell to 8.21 million barrels, the lowest level in several years. Insights Global analyst Wadkinnigan said: "Diesel demand is rising in northwestern Europe, but refinery capacity is lower than before the outbreak, coupled with reduced imports, putting the oil market under heavy pressure. Diesel prices in Northwest Europe reached $114 a barrel on the 7th, the highest since September 2014, and the spread with crude oil per barrel last week hit a two-year high. Tight global diesel supplies have led to a rise in 10 ppm ultra-low sulphur diesel prices in Asia to their highest since September 2014.

Morgan Stanley analysts pointed out that diesel prices soared to about $180 a barrel in 2008, mainly because the middle distillate market was unusually tight, when brent crude futures rose to about $150 a barrel. "We don't expect that year to happen again, but diesel prices have indeed closely followed the rally between 2007 and 2008 in recent months, and we also expect crude oil prices to rise to $100 a barrel in the second half of the year," the analysts noted. ”

And the heads of Europe's biggest energy companies, including Patrick Pouyanné, chief executive of Total, warned that global consumers would face years of high energy prices as the global economy recovered strongly after the pandemic and new investment by energy companies declined.