Morgan Stanley: European Diesel Supply Tightness May Deepen

According to Jin10, Morgan Stanley said Europe is facing a diesel supply squeeze as several major supply challenges emerge at the same time, refinery margins in the region have hit record highs, and inventories continue to decline. Analysts including Martyn Raetz said in a report on July 19 that Europe’s diesel inventories could fall to their lowest level in years by the end of the year, and that the real bottleneck in the oil system is refining rather than crude oil. They also said some African oil cargoes have not yet been sold and that forward prices in some market areas are showing a bearish trend.