Goldman Sachs: Global Diesel Prices to Remain High Until Next Year

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Vanda Bhar noted that Middle Eastern refining facilities, which produce approximately 2 million barrels per day, remain offline, and diesel supply disruptions are being exacerbated by damage to Russian refining facilities. He added that U.S. refining facilities, which have postponed maintenance to operate at full capacity, will eventually have to shut down for repairs, leaving the possibility of further supply disruptions open.
Regardless of oil prices, as refining facilities are damaged or shut down, and aging facilities in other regions are closed, the overall refining capacity is decreasing. Therefore, it is highly likely that Korean refiners will maintain strong performance due to high refining margins through next year.