A weakening diesel market is becoming a problem for oil
“The market’s main bearish fundamentals include sluggish economic recoveries in major regions, and a significant increase in diesel-making capacity in Africa, the Middle East and Mexico”, according to James Noel-Beswick, an analyst at Sparta.
Bloomberg, April 18, 2024 – James Noel-Beswick from Sparta pointed out that the global diesel market is weakening, attributed to sluggish economic recoveries and an increase in diesel-making capacity in Africa, the Middle East, and Mexico. This is reflected in the contango seen in futures markets across Europe, Asia, and the US, signaling a decline in demand.
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