Delay in New Capacity Keeps Asian Diesel Spreads Elevated

The anticipated roll‑out of more than 2.3 million barrels per day of new refining capacity worldwide is encountering setbacks, according to the latest industry observations. These delays are likely to keep product markets tighter than initially expected, especially for diesel.

Higher-than‑forecast diesel demand, combined with postponed start‑ups, is projected to reinforce the diesel crack spread. As a result, refiners that rely heavily on diesel sales may enjoy a sustained earnings boost throughout the coming quarters.