Diesel buyers compete for shrinking supply pool
“Diesel demand continued to remain fairly strong even in the wake of higher retail prices, as there is not much alternative for fuel needed for industrial activities.”— June Goh, Senior Oil Analyst at Sparta Commodities
- Expert: June Goh (Senior Oil Market Analyst, Sparta)
- Publication: The Wall Street Journal
- Market Focus: Distillates, Diesel, Refining Margins, Supply Disruptions
- Geographies: US, Europe, Middle East
In an analysis for The Wall Street Journal, Sparta’s Senior Oil Analyst, June Goh, highlighted the high price elasticity barrier facing middle distillates, noting that diesel demand remains resilient despite surging retail prices due to the lack of viable alternatives for industrial operations. With US distillate inventories at 30-year seasonal lows and European crack spreads touching $90/bbl amid Middle East and Russian disruptions, refiners face an escalating supply squeeze ahead of peak seasonal demand. This inelastic industrial baseline leaves global markets exceptionally vulnerable to persistent shortages into the winter months. Traders should watch US distillate inventory draw rates, refiner yield shifts between jet fuel and diesel, and US Gulf export arbs closely.
[Read June Goh’s full commentary in The Wall Street Journal]
About the Author
June Goh | Senior Oil Analyst, Sparta Commodities
June is a senior oil market analyst at Sparta specialising in global crude trade flows and refining economics across Asia and Europe. Her analysis is regularly cited by Bloomberg, the Financial Times, and Reuters. With a significant following in the energy community on X (@JuneGoh_Sparta), June’s insights are a staple for institutional traders navigating regional market shifts.
Connect: LinkedIn / X
About Sparta
Sparta is a live, market intelligence and forecasting platform that enables oil traders, refiners, banks, hedge funds and wholesalers to have access to real-time and global actionable insights to capture market opportunities before others.
To find out how Sparta can allow you to make smarter trading decisions, faster, contact us for a demonstration at sales@spartacommodites.com
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