The oil market is struggling to restock global diesel supplies before disruptions from hurricanes and refinery maintenance. Prices remain high due to tight storage and increased demand, impacting inflation and consumer confidence. Europe is vulnerable due to a lack of nearby supply sources, with prices expected to stay elevated.

US and European diesel stockpiles are at century-low levels, causing supply constraints. Refinery closures and high demand have exacerbated the issue, with prices hovering around $90 a barrel. Structural tightness in refining capacity is expected to keep prices high into 2026.

Hedge funds have increased bullish bets on oil and diesel amid Trump’s threats on Russian crude buyers. However, recent relief in stockpiles and increased shipments from Asia and the Middle East to Europe have eased concerns. Prices are expected to eventually ease as OPEC+ adds more heavy crude supplies.

Read more at Yahoo Finance.: Oil Traders Race Against Time to Solve Global Diesel Crunch