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Asia Better Positioned to Weather Global Diesel Crunch Than Europe
M
Moneycontrol•29-09-2026, 15:09
Asia Better Positioned to Weather Global Diesel Crunch Than Europe
- •Asia is better positioned than Europe to handle an emerging global diesel crunch, with spot cargoes into Northwest Europe becoming significantly more expensive than in Singapore.
- •The widening price differential, averaging $174 a ton in September compared to $27 in May, reflects the relative strength of the Asian market.
- •The global diesel market is tight due to seven months of war in the Middle East and Russia's prolonged shipment ban after Ukrainian drone attacks on refineries.
- •President Donald Trump is considering a ban on US exports, which analysts warn could significantly increase overseas prices, especially in Europe.
- •Asian refiners have secured crude oil feedstock, ensuring continued fuel production, with India honoring export contracts and China easing export curbs.
Key Questions Answered
Asian refiners have successfully secured much of their crude oil feedstock for the coming months, allowing them to maintain fuel production despite shipping disruptions in the Persian Gulf. Additionally, key producers like India intend to honor overseas contracts, China has eased export curbs, and Japan's exports may rebound.
With American pump costs hitting record highs, President Donald Trump has weighed a ban on US exports. Analysts warn that such a restriction could supercharge overseas prices and severely tighten supplies, especially in Europe.
The tight global diesel market is a result of seven months of war in the Middle East and a prolonged shipment ban imposed by Russia following Ukrainian drone attacks on its refineries.
