2023-04-16 15:23:00
Signs of an economic slowdown are flashing in the global diesel market.
The number of trucks on China’s highways has dropped significantly in recent weeks. In Europe, the premium for diesel to crude oil futures recently fell sharply to its lowest level in more than a year. U.S. demand is expected to decline 2% this year if current trends continue, according to S&P Global. It will be the biggest drop in U.S. diesel use since 2016, except in 2020, when much of the economy was on hold.
“It’s been one of the worst economic conditions in recent times, outside of the 2008-09 financial crisis and the coronavirus pandemic,” said Debnir Chowdhury, head of analysis for Americas fuels and refining at S&P. We see it as one,” he said.
Demand for diesel, which powers heavy equipment, from commercial trucks to construction equipment, is weakening in many major economies. Taken as an early sign of softening industrial activity and lower consumer spending, it’s a cautionary tale for those watching the signs of a recession.
“Diesel demand might be a leading indicator of the broader economy,” said Ben Ayers, senior U.S. economist at Nationwide Economics. consistent with,” he said.
Original title:Fuel That Powers the Global Economy Is Flashing Recession Signs(excerpt)
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