Market · Distillates · 7 min read

Diesel cracks and the European industrial cycle

What manufacturing PMIs and trucking telematics tell us about gasoil demand.

European gasoil demand correlates more tightly with manufacturing PMIs than with consumer confidence. When German and Italian PMIs print sub-50 for two consecutive months, ICE gasoil cracks tend to compress by $3–5/bbl with a six-week lag.

Trucking telematics — particularly Toll Collect data and motorway sensor counts — give a real-time read on freight activity that often leads PMI prints by 10–20 days. Use them as your early warning.

The current setup is mixed: motorway counts are recovering off summer lows but PMIs have not yet confirmed. We treat any rally in gasoil cracks above $25/bbl as a fade until the demand picture clarifies.