Goldman Says Oil’s Biggest Shock to Hurt Refined Products Most

Goldman Sachs says the war in the Middle East has produced the largest oil-market shock on record and will have a greater impact on refined products—particularly jet fuel and diesel—than on crude. Expect upward pressure on jet fuel and diesel prices and refining spreads, raising costs for airlines, freight and transport and increasing near-term market volatility and supply-chain risk.

Analysis

Goldman Sachs says the war in the Middle East has produced the largest oil-market shock on record and will have a greater impact on refined products—particularly jet fuel and diesel—than on crude. Expect upward pressure on jet fuel and diesel prices and refining spreads, raising costs for airlines, freight and transport and increasing near-term market volatility and supply-chain risk.