Save for later Print Download Share LinkedIn Twitter Oil prices fell below the bottom of their recent range as fears of demand contagion spread well beyond China’s current Covid-19 lockdowns. The International Energy Agency has warned current high diesel prices are almost certain to trigger demand destruction. It now sees global diesel/gasoil demand shrinking next year, even with gas-to-oil fuel switching. Europe will be forced to bid up the market in order to draw more US, Mideast and Asian fuel away from their traditional buyers to replace Russian supplies. Dwindling US manufacturing activity is also threatening to taking a bite out of distillate buying.