Red Sea Tensions Threaten to Disrupt Diesel Market Stability

Diesel and other distillate inventories are higher now than they were this time last year, suggesting that a tight global diesel market has started to ease, in part due to slowing construction and manufacturing activity in the United States and major European economies.   Refiners produced high levels of distillate volumes in the third quarter of 2023, adding to stockpiles, while the economic slowdown is weighing on diesel consumption.    U.S. diesel prices have dropped in recent weeks and are now at their lowest since…