The ”tightness” in global diesel supplies may ease early next year after peak winter demand in the northern hemisphere passes and new refineries start, the International Energy Agency said today.

”Both crude and middle distillate markets may see some respite in the second half of 2008, but more likely by early next year,” the IEA said in its monthly Oil Market Report. ”Supplies should increase over the second half of the year and into 2009 as new refining capacity comes on stream in both China and India.”
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Finally maybe a little bit of good news for fuel.

 

im not holding my breath

 

Me either since the oil comes over here to be refined to diesel and the oil companies then ship it to China. Same amount of oil being refined it is just going to cut out a step and make it cheaper for China. I was told diesel production here is up so they can ship it to China for more $$. That has caused gas production to go down which in turn raised those prices. Not sure if any of this is true just what I was told by someone in the oil biz.