There’s one good reason oil prices have never roared quite as loudly as they could have during the Strait of Hormuz crisis: China. The People’s Republic slashed its imports of crude oil and drew from its huge stockpiles. Now, though, it’s diesel that’s in short supply, sending shockwaves through the economies of the US and Europe. Could China ride to the rescue again?
In theory, yes it could. The reason diesel is in short supply globally is because facilities that are available to refine crude oil into the preferred fuel for trucks, buses and trains are already running at full tilt. Many Russian refineries, formerly outsized producers of diesel, have been taken offline owing to attacks by Ukraine.