European Diesel Supply Tightens as Inventories Fall to Multi-Year Lows by Year-End, Morgan Stanley Says

According to Morgan Stanley, Europe faces tightening diesel supply, with inventories declining and refining profits hitting record highs, as stated in a July 19 report. The bank's supply-demand model, presented by analyst Martijn Rats and colleagues, shows European diesel stocks are expected to fall to multi-year lows by year-end. The analysts noted that the real bottleneck in the oil system is refining capacity rather than crude supply, with some African oil cargoes remaining unsold and forward prices showing weakness in certain market regions.
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