Decline in the Asian Diesel Market Puts Crude Oil Prices Under Pressure

The diesel markets in China and India, which significantly determine Asian demand, are showing initial signs of weakening, potentially leading to further declines in crude oil prices. In China, the world's largest oil importer, the demand for diesel is decreasing markedly. Similarly, in India, the growth in consumption has suffered a substantial setback. Against this backdrop, refinery profits across the region have dropped significantly. The conversion of Dubai crude oil into diesel, crucial for refinery margins, has lost more than 40% of its profitability since the beginning of the year, according to Bloomberg Fair Value data. These developments raise significant questions for the Asian oil markets and their future prospects.