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      Goldman Sachs Predicts Limited Impact from Russian Diesel Supply on Global Prices

      Goldman Sachs has indicated that the planned release of diesel from Russia is unlikely to significantly affect global diesel prices. The bank's analysis suggests that a potential drawdown of 50 million barrels from Europe’s strategic reserves could lower wholesale diesel prices by approximately $11 per barrel in both the US Gulf Coast and Europe. This comes amid ongoing discussions between Russian officials and the US government regarding increased diesel exports, which could reach between 3 million to 3.5 million tonnes by the end of the year.

      The diesel market has been under severe pressure due to disruptions caused by the ongoing conflict involving Iran, which has affected supply chains and refining infrastructure. Recent price spikes have seen US diesel prices soar to around $6.50 per gallon, with European prices also hitting record highs. In response, G7 nations agreed on October 2 to release 100 million barrels of diesel and other reserves over a four-month period, with a significant portion of this release scheduled for the initial 20 days.

      Goldman Sachs has warned that despite these emergency measures, the underlying shortage of diesel is expected to persist, with prices likely to remain elevated through 2027. The bank predicts that refining margins for diesel and jet fuel could average above $40 per barrel next year, more than double the typical levels. While the release of strategic reserves may provide temporary relief, lasting solutions will depend on increased refinery capacity and a recovery in Middle Eastern supply.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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