Diesel Price Trend

Diesel Prices December 2023

In Q4 2023, the U.S. diesel market saw bullish sentiment amid constrained supply, despite high global oil output. Influenced by reduced crude inventories and severe flooding, alongside fluctuating demand due to CPI concerns and European refinery adjustments, the market navigated complexities. No major plant shutdowns occurred. Ending the quarter, diesel prices in the U.S. reached 4 USD/Gallon, DEL-Washington, showcasing the effects of supply-demand dynamics and external factors on pricing.           

In Q4 2023, China's diesel market witnessed a 4% price increase within the quarter, amidst a global backdrop of OPEC+ production cuts and geopolitical tensions. Despite this, diesel prices saw a 3% year-over-year decline and an 8% decrease from the previous quarter, closing at 1030 USD/MT, Ex-Beijing. This was influenced by China's economic recovery and increased demand from the trucking, farming, and manufacturing sectors, alongside global supply, and geopolitical uncertainties.    

Diesel Price Trend, Market Analysis, and News

IMARC's latest publication, “Diesel Pricing Report 2024: Price Trend, Chart, Market Analysis, News, Demand, Historical and Forecast Data,” presents a detailed examination of the diesel market, providing insights into both global and regional trends that are shaping prices. This report delves into the spot price of diesel at major ports and analyzes the composition of prices, including FOB and CIF terms. It also presents a detailed diesel price trend analysis by region, covering North America, Europe, Asia Pacific, Latin America, and Middle East and Africa. The factors affecting diesel pricing, such as the dynamics of supply and demand, geopolitical influences, and sector-specific developments, are thoroughly explored. This comprehensive report helps stakeholders stay informed with the latest market news, regulatory updates, and technological progress, facilitating informed strategic decision-making and forecasting.

Diesel Market Analysis

The global diesel market size reached 1.4 In Billion Tons in 2023. By 2032, IMARC Group expects the market to reach 1.8 In Billion Tons, at a projected CAGR of 2.70% during 2023-2032.      

• Economic development or industrialization are the key factors in oil demand rise. As economies grow, sectors such as manufacturing, logistics, and construction expand, leading to increased consumption of diesel for machinery, trucks, and equipment.   
• Diesel engines serve as the key to the traditional farming practices of planting, reaping, and harvesting of different crops. In regions where agriculture forms the backbone of the economy, diesel demand is particularly high.  
• Demand for higher access to diesel sources is rising in different regions across the globe. It is used as in generators and supporting systems, particularly in areas with unreliable electricity grids or where there's a need for mobile or emergency power solutions.
• Diesel engines are frequently greatly economized and can bring torque required by trucks, buses, and ships, the essential assistant of domestic supply and delivery of goods, both countrywide and abroad.
• Innovations in diesel engine technology have made diesel engines more efficient, environmentally friendly, and compliant with regulatory emissions standards. It has allowed diesel to preserve its leads during the period of fuel security and overall economy as the most reliable fuel option.
• Environmental regulations and policies aimed at reducing carbon emissions influence the diesel market.
• The agricultural industry heavily depends on diesel-powered machinery for planting, harvesting, and processing crops.
• Diesel is one of the determinant fuel energy sources for many generators and backup systems in different parts of the globe. It is commonly employed in places with erratic or non-existing conventional electricity grids and to power mobile or emergency appliances.  
• Reserves in the global oil market have an immediate effect on the retail prices of diesel. Higher oil prices can lead to increased diesel costs, potentially reducing demand, whereas lower oil prices may stimulate demand.  
• Environmental regulations and policies making the world's air cleaner by cutting carbon emissions impact the diesel market.
• The course of economic growth and industry contributes greatly to diesel fuel consumption. As economies grow, sectors such as manufacturing, logistics, and construction expand, leading to increased consumption of diesel for machinery, trucks, and equipment.
• A study by the International Energy Agency (IEA) found that global oil demand will rise by 6% between 2022 and 2028 to reach 105.7 million barrels per day (mb/d), supported by robust demand from the petrochemical and aviation sectors.  

Diesel News

The report covers the latest developments, updates, and trends impacting the price of diesel, providing stakeholders with timely and relevant information. This segment covers a wide array of news items, including the inauguration of new production facilities, technological innovations, strategic market expansions by key industry players, and significant mergers and acquisitions that impact the diesel price trend.

Latest developments in the diesel industry:  

• On 10^th January 2023, Renault Group and PUNCH Torino signed a strategic partnership on low-emission diesel engines. Both companies have joined forces for the development of the Euro VI and Euro 7 variants of Renault 4-cylinder diesel engines for light commercial vehicles, for production starting in 2025.  
• On 22^nd November 2023, Neste joined forces with two new partners to sell and distribute Neste MY Renewable Diesel in France. The collaboration reflects a joint commitment to effective decarbonization initiatives.

Product Description

Diesel is a type of fuel derived primarily from crude oil, but it can also be produced from renewable resources such as biomass, natural gas, and coal. Due to its high density, diesel fuel embraces more energy and quite accordingly, its efficiency in very heavy duty vehicles, ships, generators, and trains is increased.

Diesel engines are known for their durability and higher fuel efficiency compared to gasoline engines, which allows vehicles to travel longer distances on less fuel. This efficiency arises from the piston design to compress air at higher ratio, thus increasing the flame speed, supremacy on fuel combustion and therefore better fuel consumption.

Diesel fuel plays a crucial role in various industries, including transportation, agriculture, construction, and manufacturing, due to its energy density and reliability.

Regional Coverage

The report provides a detailed analysis of the market across different regions, each with unique pricing dynamics influenced by localized market conditions, supply chain intricacies, and geopolitical factors. This includes price trends, price forecast and supply and demand trends for each region, along with spot prices by major ports. The report also provides coverage of FOB and CIF prices, as well as the key factors influencing the diesel price trend.

Global Diesel Price

The report offers a holistic view of the global diesel pricing trends in the form of diesel price charts, reflecting the worldwide interplay of supply-demand balances, international trade policies, and overarching economic factors that shape the market on a macro level. This comprehensive analysis not only highlights current price levels but also provides insights into historical price of diesel, enabling stakeholders to understand past fluctuations and their underlying causes. The report also delves into price forecast models, projecting future price movements based on a variety of indicators such as expected changes in supply chain dynamics, anticipated policy shifts, and emerging market trends. By examining these factors, the report equips industry participants with the necessary tools to make informed strategic decisions, manage risks, and capitalize on market opportunities. Furthermore, it includes a detailed diesel demand analysis, breaking down regional variations and identifying key drivers specific to each geographic market, thus offering a nuanced understanding of the global pricing landscape.

North America Diesel Price   

In the North America region, the diesel market during the final quarter of 2023 underwent significant changes. A record-breaking oil production in the United States led to a surplus of diesel supply, creating a bearish market sentiment. Despite this, demand for diesel was only moderate, impacted by reduced needs in Europe and Asia due to refinery upkeep and a general decrease in global oil demand. Geopolitical tensions in the Middle East further complicated the situation, introducing concerns about supply interruptions.     

Specific diesel historical data within the United States and Canada can also be provided.

Asia Pacific Diesel Price

In the APAC region, the diesel market in Q4 2023 was shaped by OPEC+ production cuts and geopolitical tensions, notably between Israel and Hamas, which led to supply shortages and higher crude oil prices. China's recovering economy and increased manufacturing activity increased moderate to high diesel demand. These dynamics pushed diesel prices in China, reflecting the complex interplay of global events and regional demand factors.         

This diesel price analysis can be expanded to include a comprehensive list of countries within the region.

Europe Diesel Price

European diesel prices are examined, highlighting the market-specific influences in the region, such as stringent environmental regulations, the competitive landscape, and import-export imbalances that significantly affect pricing structures.

This analysis can be extended to include detailed diesel price information for a comprehensive list of countries.

Middle East and Africa Diesel Price

The report explores the diesel pricing trends in the Middle East and Africa, considering factors like regional industrial growth, the availability of natural resources, and geopolitical tensions that uniquely influence market prices.

In addition to region-wise data, information on diesel prices for countries can also be provided.

Latin America Diesel Price

The analysis of diesel prices in Latin America provides a detailed overview, reflecting the unique market dynamics in the region influenced by economic policies, industrial growth, and trade frameworks.

This comprehensive review can be extended to include specific countries within the region.

Report Coverage

Key Benefits for Stakeholders:

• IMARC’s report presents a detailed analysis of diesel pricing, covering global and regional trends, spot prices at key ports, and a breakdown of FOB and CIF prices.
• The study examines factors affecting diesel price trend, including input costs, supply-demand shifts, and geopolitical impacts, offering insights for informed decision-making.
• The competitive landscape review equips stakeholders with crucial insights into the latest market news, regulatory changes, and technological advancements, ensuring a well-rounded, strategic overview for forecasting and planning.
• IMARC offers various subscription options, including monthly, quarterly, and biannual updates, allowing clients to stay informed with the latest market trends, ongoing developments, and comprehensive market insights. The diesel price charts ensure our clients remain at the forefront of the industry.