Global Diesel Supply Crunch Is Set to Last Through Winter
Global diesel fuel supply will remain tight into next year for lack of enough refining capacity to pick up the slack from Middle Eastern and Russian facilities, Reuters has reported, citing refining and commodity trading industry executives. “There's really a shortage of products because we're missi
Source: OilPrice.com
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DW NOTE
The Strait of Hormuz has been effectively closed since September, cutting global diesel supply at the source — not at the refinery. Heating oil is up 3.2% today to $4.69 per gallon because the article's "winter crunch" is already priced into a market that knows Middle Eastern exports aren't coming back. This isn't a supply forecast; it's a description of a blockade.