Oil market at 'tank bottoms' in Asia, and Europe isn't far behind, Carlyle's Currie says
The oil market in Asia is experiencing significant challenges, with diesel prices surpassing those of jet fuel. Europe may soon face similar issues as U.S. oil flows could be temporary, coinciding with the summer driving season. Experts warn of a potential critical supply squeeze if Middle Eastern exports do not recover and inventories continue to decline.
- ▪Diesel prices have risen above jet fuel prices in Asia.
- ▪Europe is expected to face similar oil market strains within weeks.
- ▪The International Energy Agency warns of a critical supply squeeze during peak summer consumption.
- ▪U.S. oil exports to Europe may not be sustainable long-term.
- ▪Experts suggest that increasing oil supply is essential to address the underlying issues.
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"We've seen explosive prices on products. Jet fuel has come down, but diesel has now gone up above jet fuel. So, the problem here in Singapore continues. It just moved from jet to diesel," Currie said.Europe could begin seeing similar strains within weeks, as the current relief from U.S. oil flows may prove temporary, and as the summer driving season starts. "I would say, Asia, you're there. Europe, give it about another month, and look for July being a problem in the U.S.," Currie said."All of the inventories that are drawing out of the United States out of the U.S.
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