Diesel demand destruction starting to look inevitable, international agency says

From Transport Topics.

Unprecedented diesel prices mean that demand destruction for the fuel is probable, the International Energy Agency said.

Both the outright price of the fuel and its trading level relative to crude oil rose to records in October, jumping 70% and 425% respectively year-on-year, the Paris-based adviser said in its monthly report on the state of the oil market.

With economic growth showing signs of weakening in the face of high inflation and energy costs, those high prices could well prove self-defeating, the agency said.

“This increasingly ominous global outlook, along with very high prices, is set to significantly curtail diesel demand in 2023,” the IEA said.

The IEA forecast that global growth in diesel and gasoil will ease from 1.5 million barrels a day in 2021, to 400,000 in this year. In 2023, consumption will post a small decline “under the weight of persistently high prices, a slowing economy and despite increased gas-to-oil switching.”

See the complete article from Transport Topics online.