The International Energy Agency (IEA) warned earlier this week that oil market deficits would worsen in the fourth quarter.
Oil production cuts announced in the summer by Saudi Arabia and Russia aggravated the situation. However, insufficient refineries are another reason why global inventories of middle distillates are much lower than usual.
The situation is especially significant in Europe and North America, as several refineries were closed during the outbreak and others were converted into biofuel production facilities. The remaining capacity appears sufficient to produce gasoline in response to demand, but insufficient to produce diesel and other intermediate distillates in demand.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
