Diesel Prices

Diesel Prices June 2024

The diesel prices for Q2 2024 reached 1035 USD/MT in China. The market observed a steady rise in prices because of a blend of local demand pressures and limited refinery operations. Seasonal activities, particularly in agriculture and construction, high diesel usage, while maintenance at Shandong refineries tightened supply, pushing prices upward. The region’s refining adjustments, in line with sustained demand from key sectors, fostered a positive price environment throughout the quarter.

Diesel Prices December 2023

The diesel prices in the United States for Q4 2023 reached 4 USD/Gallon in December. In the USA, diesel prices experienced notable changes in the Q4 2023. The market saw a bullish sentiment due to low diesel supply resulting from reduced local crude oil reserves and severe flooding effects. Despite high supply levels generally, disruptions and concerns about future economic conditions influenced price movements.

The price trend for diesel in China for Q4 2023, reached 1030 USD/MT in December. In China, diesel prices in the final quarter of 2023 were affected by OPEC+ production cuts and geopolitical tensions. The country saw a rise in diesel demand due to economic recovery and increased industrial activity. Prices fluctuated during the quarter but showed a decrease compared to both the previous quarter and the same period last year.

Regional Coverage

The report provides a detailed analysis of the diesel 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 ex-works, 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 the current price but also provides insights into diesel historical price trends, enabling stakeholders to understand past fluctuations and their underlying causes.

The report also delves into diesel 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

Q2 2024:

In the second quarter of 2024, North America’s diesel market saw a clear downward trend because of an oversupplied market and subdued demand. Factors contributing to this included rising local diesel output and high distillate inventories, marking their peak seasonal levels in recent years. Furthermore, the decrease in Chinese recovery initiatives had an impact on worldwide demand, adding more pressure on prices. The United States experienced the greatest impact, with lower heating oil usage during the mild winter and diminished utilization of commercial diesel due to a slower manufacturing sector. The steady production conditions, alongside a restrained demand environment, continued to press prices downward, creating a persistently bearish outlook for the quarter.

Q4 2023:

During the Q4 2023, North America's diesel market experienced significant variability. The market was impacted by an excess of diesel, largely due to unprecedented oil production levels in the United States, which created a bearish outlook. Diesel demand was steady but subdued, influenced by decreased consumption in Europe and Asia as a consequence of refinery upkeep and a global drop in oil demand. Furthermore, ongoing geopolitical instability in the Middle East added to market uncertainty, influencing diesel rates. In the United States, diesel charges were notably affected by a decline in local crude oil stocks and severe flooding that disrupted supply chains. While the overall supply remained ample, these disruptions created a somewhat optimistic market sentiment. No significant plant closures were reported during this time.

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

Asia Pacific Diesel Price

Q2 2024:

The Asia Pacific region saw notable diesel price hikes during Q2 2024 because of a mix of supply chain disruptions and rising demand. Geopolitical tensions in the Middle East affected international crude supplies, placing upward pressure on prices. Additionally, the region's post-pandemic recovery increased construction and industrial activity, further driving diesel demand alongside seasonal agricultural needs. Refineries in China experienced price increase because of lessened production for maintenance, worsening the imbalance between supply and demand. A positive pricing environment took hold across the region, underpinned by a combination of supply constraints and high demand in key sectors.

Q4 2023:

In the Asia-Pacific region, the industry in the Q4 2023 was shaped by several key factors. Reduction in output by OPEC+ members resulted in shortages in supply, supporting higher diesel rates. China, as a major oil importer, saw moderate to high diesel demand, spurred by economic recovery and increased productivity in the manufacturing sector. The market in China saw fluctuations with prices rising during the quarter but showing a decrease compared to the previous year and the prior quarter. The absence of plant shutdowns during this period helped stabilizes the market.

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

Europe Diesel Price

Q2 2024:

During the second quarter of 2024, the European market saw a drop in diesel costs because of economic deceleration and expanded refining capacity, which resulted in surplus inventories and softened demand. The region’s policies, including brief tax reductions, helped ease prices while lower heating demand was influenced by mild weather. Additionally, the slowdown in Chinese recovery efforts impacted global demand, further weighing on prices. Petroleum business companies, facing lowered earnings, observed that refining margins were stabilizing at reduced levels amidst heightened competition from newly operational refineries. Furthermore, Europe’s diesel market reflects ongoing challenges, with declining prices driven by oversupply, economic complications, and changing market regulations.

Q4 2023:

During the Q4 2023, diesel charges in Europe were notably influenced by the ongoing conflict in Ukraine, which disrupted international oil distribution and drove up crude oil costs. Additionally, refinery outages across Europe alongside the decline of the euro against the US currency exacerbated supply issues and elevated diesel prices. Although there was a minor decrease in prices from mid-year peaks, they remained substantially higher than the previous year. Major European nations experienced a reduction in prices compared to the last quarter, but the overall cost of diesel continued to pressure the economy, impacting transportation costs and consumer spending. European governments have attempted to alleviate the strain through various measures, but the future of diesel prices remains uncertain amid ongoing geopolitical and economic challenges.

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

Q2 2024:

In the second quarter of 2024, Latin America's diesel market remained stable, reflecting a well-balanced supply and demand landscape. Brazil maintained steady prices, with local manufacturing and imports supporting consistency despite seasonal shifts in agricultural demand. Petroleum companies pricing strategy, affected by international crude rates and geopolitical factors, bolstered this equilibrium. Meanwhile, Brazil's shifting energy sector has shown faith through investments in renewable infrastructure, including biodiesel pipelines. The currency fluctuations had minimal effect on pricing trends, showcasing a steady quarter characterized by resilient supply fundamentals and minimal disruptions across the region.

Q4 2023:

In the fourth quarter of 2023, Latin America's diesel market experienced notable fluctuations. Geopolitical uncertainties, particularly the ongoing dispute in the Middle East, heightened worries about crude oil distribution and contributed to price volatility. Production cuts by OPEC nations, especially Saudi Arabia as well as Russia, tightened global supply, further influencing price trends. In Brazil, the appreciation of the Brazilian real and adjustments in diesel pricing by Petrobras added to the market's instability. While there was a notable increase in diesel prices initially, the end of the quarter saw significant declines due to shifting market dynamics and reduced pressure from both domestic and international demand.

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

Diesel Price Trend, Market Analysis, and News

IMARC's latest publication, “Diesel Prices, Trend, Chart, Demand, Market Analysis, News, Historical and Forecast Data Report 2024 Edition,” 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.

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.