energy

Goldman Expects Fuel Supply Tightness to Last Through 2027

Goldman Sachs sees fuel markets staying tight into 2027 on delayed refinery repairs, low Asian stocks and costly tanker freight, Market Talk reports.

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what happened

Market Talk reports that Goldman Sachs expects shortages in refined fuels to continue into 2027. The bank points to postponed refinery maintenance, which raises the chance of new outages, especially in Asia, where heavier work in the second quarter may limit diesel and jet fuel exports.

Near term, pressure is building from Ukrainian strikes on Russian refineries, unclear prospects for U.S. diesel export curbs, and higher crude prices. Record crude shipping costs are also cutting refinery margins and leaving fewer product tankers available.

Goldman analysts note that stocks stay low at major trading hubs. Chinese gasoline and diesel inventories are down 8% and 11% year on year, while Singapore's middle distillate stocks have dropped 44%.

why it matters

For markets, tight product supply supports refiners' diesel and jet fuel margins, although high freight costs take a share of those gains. Traders are likely to watch Asian maintenance schedules and any U.S. export decisions as signals for fuel prices.

market impact

Diesel and jet fuel: low stocks and constrained supply keep pressure on fuel prices and refining margins

tags

instruments

DieselJet fuelGasolineCrude oilRefining marginsSingapore middle distillates

sources

  1. Goldman Sees Refined-Product Tightness Extending Into 2027 — Market Talk, 26 October 2026 at 08:45 UTC

prepared by the newsmetry newsroom with ai assistance from the sources listed below. not investment advice.

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