Morgan Stanley: Oil Traders Are ‘More Precise’ With Risk as Wars Drag On
Crude oil market participants are increasingly narrowing their trading horizons due to unpredictable geopolitical escalations in Eastern Europe and the Middle East. According to Morgan Stanley, speculative capital and hedging strategies are concentrating on contracts expiring within three to six months rather than multi-year derivatives. This shift underscores a broader structural reluctance among institutional desks to price structural supply risks beyond the immediate calendar spread.
OilPrice · September 9, 2026
Diesel Crunch Set to Worsen as Refining Capacity Falls Short, Industry Warns
Global middle distillate balances face severe structural deficits as aging refinery infrastructure and delayed capacity additions coincide with heavy maintenance schedules. Speaking at the Asia Pacific Petroleum Conference (APPEC) in Singapore, industry executives warned that restricted supplies will sustain elevated crack spreads and drive transport costs higher globally. For macro economies, sustained diesel premiums pose a direct challenge to central bank disinflation targets given fuel's role as a baseline industrial input.
OilPrice · September 9, 2026