Goldman Doubles Diesel Profit View Amid Global Refining Contraction

Global refining capacity has been severely impacted due to ongoing wars in the Middle East and between Moscow and Kyiv, according to Goldman Sachs Group Inc. The bank's analysts have increased their forecasts for profits from making diesel by more than double.

The conflicts have constrained global refining capacity, pushing refined-products margins to new highs. 'Diesel remains at the epicenter of the rally,' said Goldman analysts Yulia Zhestkova Grigsby and Daan Struyven in a note.

Goldman Sachs warned that rising strikes on refineries in the Middle East and Russia have further exacerbated the issue, leading to tightness in global refining. The bank's new forecasts for profits from making diesel are likely a response to these developments.