This summer, Middle Distillate prices surprised the market on the upside with a rally that most market participants didn`t expect. The upward move was driven mainly by a diesel supply crunch across the globe.

Global diesel demand surged unexpectedly driven by strong manufacturing activity, transportation and cooling demand due to heatwaves. As you can see on TraditionData’s chart below, even if price partially retraced in July and August, the North West Europe Diesel-Gasoil Differential is regaining strength in September. 

With winter approaching, Diesel’s supply shortage and Russian flows can amplify bullish seasonal factors, while warm weather or faster than expected inventory surge may reduce Diesel prices strength.

In this volatile and rapidly changing market, timely and independent data is more crucial than ever. TraditionData’s real-time and EOD Refined Products and LPG data packages provide market participants with actionable insights, enabling them to navigate shifting trade flows, manage risk exposure, and make informed trading decisions.

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