Goldman says diesel prices may stay elevated through 2027

Goldman Sachs expects diesel prices to remain elevated through 2027 as refinery limits and rebuilding demand keep the market tight. The bank said higher prices may be needed to curb consumption while supply stays constrained. The outlook comes as global diesel and jetfuel crack spreads are forecast to average above $40 per barrel in 2027, well above typical levels. Goldman said refinery outages, maintenance needs, and weaker capacity growth outside China could keep product inventories under pressure. The report also noted that recent crude and product releases by Group of Seven nations are unlikely to solve the underlying supply imbalance. Analysts said emergency stock releases may ease shortterm pressure, but they do not replace the need for more refining capacity and inventory rebuilding.