Tight Physical Supplies Widen Oil Market Deficit Amid Disruptions

Global oil markets are facing tight physical supplies and disruptions in oil supply from producing countries could further widen the existing deficit, according to Pulkit Agarwal, Global Director of India Content at S&P Global Energy.

The continued disruptions have been affecting global oil and gas markets for over six months, with some challenges particularly visible in refined products such as diesel. Agarwal noted that record cracks are being seen in diesel, indicating a tight physical oil supply situation.

Ongoing conflicts and geopolitical developments continue to impact oil prices, which have experienced several peaks and declines. While some oil is still flowing through the Strait of Hormuz, limiting a sharper rise in prices, the global market remains under pressure.