Morgan Stanley analysts have issued a warning regarding a potential acute shortage of diesel in Europe, citing a convergence of supply-side disruptions that threaten to tighten the market further.
The investment bank’s research highlights multiple simultaneous logistical and production challenges that are expected to intensify in the coming months, raising concerns about availability for industrial and transport sectors.
Diesel and gasoline prices in the European Union surged in May, with diesel costs jumping 29% year-on-year and gasoline rising 16%.
The warning comes at a time when European fuel markets are already under significant strain.
Diesel and gasoline prices in the European Union surged in May, with diesel costs jumping 29% year-on-year and gasoline rising 16%.
These increases have been a primary driver behind the eurozone’s consumer price index pressures, complicating the inflation outlook for policymakers.
With previous price caps having expired, the market is now more exposed to raw supply shocks.