Diesel Price Trend and Forecast

North America

Diesel prices decreased throughout quarter III of 2022 in the North American region. A consistent drop in upstream crude oil prices reduced the production costs of Diesel throughout the quarter on the back of a reduction in demand from Asian importers. From the second month of Q3, Diesel prices fell noticeably due to a significant decline in the American Truck Tonnage Index and indicated less consumption. Also, the reduction in manufacturing activities declined consumer demand for fuel and offtakes. It increased domestic inventories, and after a plunge of 4.6% in the previous quarter's discussions, Diesel prices in the USA settled at USD 4.9/gal.

Asia

In China, Diesel prices decreased consistently due to reduced demand and weak upstream Crude Oil Prices. During summer, demand from China and the southeast countries declined in the Asian logistics segment due to a reduction in operational rates during summer on government instructions. On the other hand, in India, a stable price trend was observed on the back of reduced demand sentiments by the consumers during the monsoon and a reduction in construction and logistic activities. After an average decrease of 7.4% in the previous quarter's prices, Diesel discussions in China settled at USD 1110/ton. At the same time, Diesel prices in India witnessed INR 94.24/Litre at the end of quarter III of 2022.

Europe

A fluctuating price trend of Diesel was observed in Europe during Q3 of 2022. At the beginning of the quarter, the prices decreased due to a reduction in upstream crude oil prices. However, in the mid-quarter, the price trend revived, and prices surged sharply on the back of crude oil imports at high prices from the US and a simultaneous depreciation of almost 6% of the Euro against the USD. Towards the end of the quarter, the product prices decreased because of a reduction in offtakes. Due to the rise in inflation, the demand plunged from the consumer end. Subsequently, at the end of Q3, Diesel prices in Germany settled at USD 1.96/L.

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