The diesel markets in China and India, which make up the majority of Asian demand, are showing signs of a slowdown, raising concerns about weaker crude oil prices. In China, the world’s largest oil importer, diesel demand is shrinking, while India’s consumption growth has significantly slowed. Profits for refiners turning Dubai crude into diesel have dropped over 40% since the start of the year, according to Bloomberg data.
Diesel is crucial for global energy, powering trucks, mining, and agriculture. This slowdown has affected global oil prices, with Brent crude falling to its lowest since late 2023. Similar trends are seen in Europe, where diesel futures reached their lowest point since mid-2023.
China’s diesel consumption has dropped over 10% this year due to a slowing economy, property crisis, and structural shifts towards alternatives like natural gas and electric vehicles. In India, diesel consumption grew just 2.4% in the first eight months of 2024, down from 6.7% in the same period last year.