Signs of an economic slowdown are flashing in the global diesel market, according to Bloomberg News. In China, the number of trucks on highways is noticeably down, while in Europe, diesel’s premium to crude futures recently plunged to the lowest in over a year. In the U.S., demand is on track to contract 2% in 2023. Excluding 2020, when much of the economy briefly came to a standstill, that 2% slump would be the biggest drop in America’s diesel use since 2016.
We are “assuming one of the worst economic climates in recent memory outside of the 2008-2009 financial crisis and the pandemic,” Debnil Chowdhury, S&P Global’s head of Americas fuels and refining, told Bloomberg.
