The bank attributed the spike to supply disruptions west of the Strait of Hormuz rather than elevated crude prices, pointing to a squeeze in refined fuel availability.
Europe's diesel refining margins have reached record highs, Morgan Stanley said, with the bank attributing the move to supply disruptions west of the Strait of Hormuz rather than elevated crude prices. The distinction matters because refining margins track the profitability gap between crude input costs and refined fuel prices, and a rise driven by product supply tightness can signal stress in fuel markets even without a broad jump in oil benchmarks.