Europe, and indeed the global diesel market, is once again showing signs of disruption, with a new round of inflationary pressures set to confront the global economy with yet another dilemma.

As a key power fuel for trucks, trains, and ships that drive the industry, diesel is facing huge spot purchase premiums in the European market.

"The supply situation is very tight and end-user inventories are very low," said Gary Ross, a veteran oil consultant " We don't know where the re-supply is going to come from. Diesel is an industrial product for the world, so it's not going to help an already weak economic environment."

Mark Williams, head of short-term oil research at energy consulting firm WoodMackenzie, said, "On a macroeconomic level, higher oil processing will increase inflation and reduce economic growth. Higher diesel prices will affect everyone. This is because diesel prices have a direct impact on production, transportation, and heating costs."

As diesel prices rise, so do the costs of goods that are generally passed on to consumers.

The current state of the diesel market could be a wake-up call for the Berlin and Paris markets.

Consulting firm Energy Aspects expects European diesel stocks to fall to their lowest level since 2018 this month

Analysts believe that European countries will have to find new sources of supply if they want to alleviate the shortage of diesel stocks and rising prices. This could make the trade in refined products between the United States and Europe active, and Europe is likely to increase imports of refined products from the United States.

In this context, Europe's purchase of diesel from the United States will also face competition from countries such as Latin America, and if European countries do not pay a higher premium, the shortage of supply will remain in the short term.