Europe Faces Diesel Crunch as Inventories Head Toward Multi-Year Lows

European diesel markets are set to further tighten as multiple supply disruptions have combined to drag inventories to multi-year lows, analysts at Morgan Stanley say.

“The picture is genuinely tight,” Morgan Stanley’s wrote in a note on Sunday carried by Bloomberg.

“Our supply/demand modeling points toward European diesel inventories falling to multi-year lows toward year-end,” the U.S. investment bank said in the note.

The diesel markets, and fuel markets in general, have been telling a very different…