Goldman Sachs significantly raised its 2027 diesel margin forecasts, increasing its US diesel-to-Brent crude margin expectation from $27/barrel to $63/barrel, and for Europe from $19/barrel to $49/barrel, citing a widening global refining deficit.
Goldman Sachs significantly raised its 2027 diesel margin forecasts, increasing its US diesel-to-Brent crude margin expectation from $27/barrel to $63/barrel, and for Europe from $19/barrel to $49/barrel, citing a widening global refining deficit. In its August 29 report, Goldman Sachs noted that global refined product exports have fallen by approximately 6 million barrels per day year-on-year (about 25%), with the Persian Gulf and Russia together accounting for about three-quarters of this decline. The report anticipates that global refinery utilization rates will not normalize until the second half of 2027, and the structural shortage of diesel will continue to be priced in.
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