Diesel squeeze set to last well into 2027 as Iran war disrupts supply, IEA says
The agency said 1.3 million barrels a day of diesel exports from Russia and the Middle East were lost, leaving inventories below seasonal norms.
- On Wednesday, the International Energy Agency warned that global diesel markets will remain tight into the latter half of 2027, citing persistent supply disruptions and counter-seasonal stock drawdowns ahead of peak winter demand.
- A 1.3 million barrel-per-day shortfall from Russia and the Middle East, driven by refinery damage linked to the Iran war, was only partially offset by higher supply from other sources, the IEA said.
- Wholesale diesel prices reached record highs above $200 a barrel in Singapore and around $220 in Europe and the United States, raising goods costs and weighing on real incomes and inflation.
- IEA members are coordinating the release of 100 million barrels of oil and diesel from strategic reserves to stabilize volatile prices amid widespread economic and political pressure on energy markets.
- The agency warned that renewed attacks in the Gulf leave the recovery fragile, with replenishment of lost inventories unlikely before the second half of 2027 unless regional conflicts resolve.
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142 Articles
The engine of the world economy is stalling: Due to the conflict in the Middle East and the lack of refinery capacities, diesel remains scarce. Despite emergency clearances by the G7 for the time being, a discharge is not in sight.
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Cyprus could face continued pressure on fuel prices, transport costs and business expenses well into 2027, as the International Energy Agency (IEA) warned that global oil markets would remain tight despite falling demand and a recovery in production. In its latest Oil Market Report, published this week, the agency warned that oil supply would remain […]
Even in a favourable scenario, diesel shortages will not end before the second half of next year, as stated by the IEA.
The International Energy Agency is alarming: the diesel market is under enormous pressure in the face of massive supply failures from Russia and the Middle East. Wholesale prices have more than doubled since February. At the same time, European stocks are unusually low.
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