Global Diesel Crunch Fuels New Wave of Energy Nationalism
Global fuel stocks are tighter than they have probably ever been. China just imposed a ban on all fuel exports for the month. Russia has had a diesel export ban in place for months. The United States threatened Europe with a diesel export ban unless European countries released some fuel from storage
Source: OilPrice.com
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DW NOTE
The Strait of Hormuz has been shut for 221 days. The oil supply contraction is 5.7 million barrels per day. If diesel were genuinely scarce, refiners would be printing money and governments would be bidding against each other for cargoes. Instead, WTI is down 22% from recent highs and Brent has fallen 15.7%. The "crunch" appears to be a shortage of headlines, not fuel.