Oil Flows Are Recovering But Diesel is Likely To Continue Being Expensive For a While. Here's Why.

Goldman Sachs is forecasting continued pressure in global diesel markets as refiners work through tight capacity and depleted inventories.

Even as more crude oil begins flowing through the Strait of Hormuz, diesel prices could remain high through 2027 as refineries struggle to meet recovering demand and rebuild depleted inventories.

Goldman Sachs expects global diesel and jet-fuel crack spreads, the difference between the price of refined fuel and the crude used to produce it, to average more than $40 a barrel in 2027, more than double their usual level of around $20.