Tight supplies, heating demand drive global gasoil margins to record highs

Refiners globally are reaping the highest profits from gasoil production in years on stronger than expected demand and tight supplies despite concerns about the Omicron coronavirus variant's impact on the world economy.

Demand for the fuel used to power trucks, generators and machines remained strong even as COVID-19 cases surge across the world as measures taken by governments to curb the spread were less severe than in 2020, traders and analysts said.

Strong jet fuel prices have also reduced the availability of the middle distillate for blending into the diesel pool, they added.
 

Stronger that expected demand has led to