MelnikovSergei/Shutterstock Save for later Print Download Share LinkedIn Twitter Diesel prices have slid amid dire warnings about the state of end-user demand in Europe and no apparent let-up in global fuels production. Analysts blame a combination of low industrial activity, a mild winter, rising vehicle efficiency and Europe’s changing car fleet for the 200,000 barrel per day drop in regional diesel buying so far this year compared to last. The International Energy Agency expects Europe’s diesel market to be around 600,000 b/d, or nearly 10% smaller this year versus 2019. The rapid recovery in diesel demand seen immediately after the pandemic was quickly undone by spiking fuel prices after Russia’s February 2022 invasion of Ukraine. Much of the demand destruction now looks to be permanent.
