Oil and Gas Procurement: How Buyers Source Crude Oil and Petroleum Products

Global diesel supply is coming under increasing pressure as refinery disruptions, geopolitical risks and limited spare refining capacity reduce the availability of refined products.

For EN590 buyers, the situation is becoming particularly important. The market is not simply dealing with crude oil supply concerns. Refining capacity, product inventories, export restrictions and refinery outages are increasingly determining how much diesel is available to international buyers and at what price.

Recent market developments indicate that diesel markets could remain tight as demand increases toward the winter period while several major refining regions continue to face operational and geopolitical disruptions.

Refinery Disruptions Are Tightening Global Diesel Supply

The availability of crude oil does not automatically guarantee an adequate supply of diesel.

Crude must first be processed through refineries before it becomes EN590 diesel, gasoline, jet fuel and other refined products. When refinery capacity is disrupted, the market can experience a shortage of finished fuels even when crude remains available.

This is becoming an increasingly important factor in the global diesel market.

Refinery disruptions linked to geopolitical conflict, attacks on energy infrastructure, maintenance and restricted crude flows have reduced effective refining capacity in several important producing regions.

The result is greater competition for available diesel cargoes.

For international buyers, this can translate into:

• Higher diesel premiums
• Wider refinery margins
• Greater competition for export cargoes
• Longer procurement lead times
• Increased importance of confirmed refinery or end-seller allocation
• Greater scrutiny of storage and terminal arrangements

Diesel Margins Are Rising as Refineries Come Under Pressure

One of the clearest indicators of tightening refined-product markets is the strength of diesel refining margins.

A strong diesel crack spread indicates that the market is placing a higher value on refined diesel relative to the crude oil used to produce it.

Recent market reporting showed diesel crack spreads reaching exceptionally high levels as refiners struggled to keep pace with demand and disruptions reduced available product.

This creates a difficult environment for buyers looking for large-volume EN590 supply.

When refinery margins rise sharply, sellers have less incentive to offer deeply discounted cargoes. Buyers may therefore encounter higher FOB prices, tighter payment terms or greater competition for available loading slots.

Middle East Disruptions Add Pressure to Refined Fuel Markets

The Middle East remains one of the most important regions for global petroleum supply, including refined products.

However, continuing geopolitical disruption has affected refinery operations, shipping routes and the movement of petroleum products through the region.

This matters for trading hubs such as Fujairah, where international buyers and sellers rely on reliable refinery supply, terminal capacity and marine logistics.

The broader disruption has also affected shipping and alternative supply routes, increasing uncertainty around delivery schedules and regional availability. Recent reports indicate that Middle East supply disruptions are contributing to significant pressure across refined fuel markets.

For EN590 buyers, the implication is straightforward: a quoted price is only useful when the underlying cargo, loading location and supply chain can be verified.

Russia Remains an Important Factor in Diesel Availability

Russia is another major factor in the global diesel market.

Restrictions on Russian energy exports and disruption to Russian refining operations have reduced the amount of diesel available to some international markets.

This has increased pressure on alternative suppliers and encouraged buyers to compete for replacement volumes from the Middle East, Asia, Europe and other producing regions.

The impact is particularly important for Europe, where diesel demand remains substantial and the market has historically relied on international supply flows.

As winter approaches, seasonal demand can add another layer of pressure.

Why EN590 Buyers Need to Focus on Supply Verification

In a tight market, procurement should not be based on price alone.

A low-priced EN590 offer may look attractive, but buyers need to establish whether the seller actually controls the product being offered.

Before progressing with a transaction, serious buyers should verify:

Refinery or End-Seller

The buyer should establish who is actually supplying the cargo and whether the stated refinery, producer or authorized seller can support the transaction.

Available Cargo Volume

Large monthly quantities require credible allocation. Buyers seeking hundreds of thousands or millions of metric tons should expect the seller to demonstrate how the volume will be supplied.

Loading Location

The exact loading location should be clearly identified.

For example, an EN590 FOB Fujairah transaction should identify the relevant terminal or loading arrangement rather than simply stating “Fujairah” without supporting documentation.

Product Specification

EN590 10PPM should be supported by appropriate product specifications and documentation confirming that the cargo meets the agreed quality requirements.

Tank Storage and Terminal Arrangements

Where a transaction requires storage before loading or delivery, the tank facility and storage documentation should be independently verified.

A Tank Storage Receipt (TSR) should not simply be accepted because it has been provided by an intermediary. The buyer and relevant parties should establish that the storage facility is genuine and that the proposed arrangement is actually usable for the transaction.

Pricing Structure

Buyers should also understand the difference between gross and net pricing.

The pricing structure should clearly identify the commercial price, applicable commissions and any intermediary arrangements rather than presenting an unusually large unexplained difference between gross and net figures.

What Rising Diesel Margins Mean for EN590 Procurement

Higher diesel margins can make procurement more challenging for buyers who are looking for discounted cargoes.

Refineries have stronger economic incentives to maximize profitable refined-product output, while traders and distributors compete for available volumes.

That can make genuine allocation more valuable than simply finding the lowest advertised price.

For buyers, a stronger procurement process should therefore focus on:

Verified supply → Confirmed allocation → Product documentation → Terminal verification → Commercial terms → Transaction execution

This approach can help distinguish a genuine supply opportunity from an offer that exists only on paper.

European Diesel Markets Face Additional Pressure

Europe is particularly exposed to diesel supply disruptions because of its dependence on international refined-product flows.

Recent market reports indicate that European diesel markets are experiencing strong pricing pressure as refinery constraints, geopolitical disruptions and seasonal demand interact.

This could increase the importance of alternative supply routes and established trading hubs.

For buyers sourcing EN590 from international suppliers, the ability to secure a verified loading position and dependable logistics may become just as important as the headline price.

What EN590 Buyers Should Watch Next

Several factors will determine whether diesel supply pressure continues:

• Refinery restart schedules
• New refinery outages
• Russian diesel export restrictions
• Middle East geopolitical developments
• Strait of Hormuz and Red Sea shipping conditions
• European winter diesel demand
• Refinery utilization rates
• Global diesel inventories
• Availability of FOB cargoes from major export hubs
• Freight and terminal costs

If refining capacity remains constrained while inventories continue to decline, diesel markets could remain tight even if crude oil supply improves.

The Outlook for Global Diesel Supply

The current market demonstrates an important distinction between crude oil availability and refined-product availability.

The world can have sufficient crude oil while still experiencing tight diesel markets if refinery capacity, logistics or product inventories are constrained.

That is why refinery outages are becoming such an important factor in EN590 pricing and procurement.

For buyers, the priority should be securing verifiable supply rather than simply chasing the lowest advertised price.

Global diesel markets are entering a period in which refinery capacity, geopolitical risk and seasonal demand could continue to influence EN590 availability and pricing.

Businesses seeking EN590 diesel should therefore conduct proper seller, refinery, allocation, terminal and documentation verification before committing to a transaction.

Source

Source: Bloomberg, published via Rigzone.
Original report: Goldman Sachs Steps Up Warnings on Diesel — August 31, 2026.
View the original report on Rigzone

Additional market context: Reuters reporting on global diesel supply, refinery capacity and refined-product inventories.