Asia Outpaces Europe Amid Global Diesel Shortage

Asia is currently better positioned than Europe to manage an emerging global diesel shortage. Data from the General Index indicates that spot cargoes delivered into Northwest Europe have become significantly more expensive than those in Singapore, the primary Asian refining and trading hub.

The price differential between the two regions averaged approximately $174 a ton in September, a sharp increase from the $27 average recorded in May. This market tightening comes as the Federal government of the United States considers implementing export curbs that could further restrict the global supply of the fuel.