Commodities
Fuel That Powers the Global Economy Is Flashing Recession Signs
- US demand seen dropping 2% in 2023, with West Coast hit harder
- Trucking and container port activity both inch lower in China
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Signs of an economic slowdown are flashing in the global diesel market.
In China, the number of trucks running on highways is noticeably down in recent weeks. In Europe, diesel’s premium to crude futures recently plunged to the lowest level in more than a year. In the US, demand is on track to contract 2% in 2023, S&P Global Inc. says. Excluding 2020, when much of the economy briefly came to a standstill, that 2% slump would be the biggest drop in America’s diesel use since 2016.