Goldman Sachs Expects Diesel Prices to Stay Elevated Through 2027
The US investment bank says limited refining capacity and rising government and corporate demand to rebuild fuel reserves will keep diesel prices high.
Written by EGazette’s AI. The facts are drawn from cited sources; the analysis is the AI’s own.
Diesel fuel prices are likely to remain elevated through 2027, according to forecasts from the US investment bank Goldman Sachs, as reported by Kommersant citing CNBC.
Goldman Sachs analysts attributed the expected persistence of high prices to a combination of two factors: constrained capacity at oil refineries and growing demand from governments and companies seeking to replenish depleted fuel reserves.
Diesel is a critical input for freight transport, agriculture, construction and industrial activity, making sustained high prices a potential source of broader inflationary pressure across multiple sectors of the global economy.
Refining capacity has been a persistent bottleneck in global fuel markets in recent years, with several refineries closed or converted in various regions even as demand for refined products has remained resilient. At the same time, efforts by governments and firms to rebuild strategic and operational fuel stockpiles have added an additional source of demand competing for limited refined output.
Goldman Sachs did not specify a price target in the cited forecast, according to the report, and the bank's analysts did not indicate when, if at all, the current supply constraints might ease.
Sources
EGazette summarizes reporting from multiple sources; follow the links for the originals.
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