Ibsight - Global diesel demand slackens as economy falters

Supply down: A truck entering a petrol station in Marseille, southern France. The cyclical slowdown will rebuild distillate fuel oil inventories, which have depleted to multi-decade lows in North America, Europe and Asia following the pandemic and sanctions on Russia. —AFP

GLOBAL distillate consumption has begun to decelerate in response to high prices and slowing manufacturing and freight activity, which should take some heat out of oil prices in the next few months.

Interest rate rises by the US Federal Reserve and other major central banks will force an even deeper slowdown in manufacturing and freight in the second half of 2022 and the first half of 2023.