The price of oil is once again in the eye of the hurricane. Contracts for the benchmark crudes, Brent and WTI, were this week above US$90 a barrel and some analysts predict that they could exceed US$100 in the near future. But one of the most important oil derivatives, diesel, key for the transportation of goods, faces an even more complex market.

At the beginning of last week, the price of diesel in the United States exceeded US$140 per barrel for the first time this year. In Europe, meanwhile, the price of diesel has risen by 60% since the summer.

One of the factors behind the rise is the restrictions on the production of the types of oil rich in distillates - from which diesel is obtained - produced by Russia and Saudi Arabia, which both countries will maintain at least until the end of the year, as announced at the beginning of September. -from which diesel is obtained - produced by Russia and Saudi Arabia, and which both countries will maintain at least until the end of the year, as announced at the beginning of September.

This is compounded by lower refinery supply globally. Refineries in the northern hemisphere had to reduce their operations in the summer due to the high temperatures and, in addition, were pressured to produce other types of fuels, such as jet fuel and gasoline, due to the sharp increase in demand. This in a context in which the global refinery fleet was reduced after the closure, during the pandemic, of the least efficient units and whose operators are reluctant to bring them back into production.

Russia, still a major supplier of diesel despite international sanctions for the invasion of Ukraine, is still a major supplier of diesel despite international sanctions for the invasion of Ukraine., has announced that it will limit the volume it will send to global markets. China, meanwhile, has announced new fuel export quotas, but analysts believe that this will not be enough to avoid a tight market by the end of this year.

Inventories, moreover, are at their lowest levels in a long time.

Not everyone agrees that the market will be as tight as feared. They point to the fact that, with the arrival of autumn and cooler temperatures, refineries in the northern hemisphere will be able to remove the restrictions on their operations that they were forced to implement in the summer, refineries in the northern hemisphere will be able to remove the restrictions on their operations that they were forced to implement in the summer.

After all, the current tightness of the diesel market is due to supply constraints. Demand has not grown as strongly as for other fuels, such as gasoline, jet fuel and kerosene.

One of the main concerns about the current diesel market The current diesel market is having an effect on inflation, given the importance of this fuel in product distribution chains.