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Global Diesel Shortage Fears Drive Formosa Petrochemical Shares Above NT$100
Energy Minerals · Oil Refining/Marketing · economic_daily · 2026-10-02
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Global diesel supply concerns intensify as Middle East refinery disruptions and Chinese export curbs push prices higher, fueling a rally in Formosa Petrochemical shares.
What Happened
Global Diesel Supply Crunch: Global diesel markets are facing a structural supply deficit due to ongoing disruptions in Middle East refining and Russia's extended export bans. With U.S. refineries operating at near-maximum capacity, they remain unable to fully bridge the widening gap in global supply.
China's Export Policy Shift: Chinese refiners have reportedly suspended certain petroleum product exports to prioritize domestic demand, adding further volatility to international markets. Investors are closely monitoring Beijing's post-holiday policy stance, which remains a critical variable for global fuel pricing.
Formosa Petrochemical's Outlook: Analysts suggest that Formosa Petrochemical is well-positioned to benefit from high refining margins, given that 86% of its diesel output is exported. The company is expected to maintain strong operational performance through the fourth quarter as the global supply-demand imbalance persists.
Market Performance: Shares of Formosa Petrochemical surged during the session, breaking through the NT$100 threshold to reach a new high since May 2022. While the stock later pared some gains, the market remains bullish on the company's prospects amid the tightening global refining landscape.