Diesel squeeze set to last well into 2027 as Iran war disrupts supply, IEA says
The agency said depleted inventories and disrupted exports have pushed diesel prices to record levels, with replenishment unlikely before the second half of 2027.
- 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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156 Articles
Chevron CEO Warns Drained Oil Buffers Leave Markets Exposed as Diesel Crisis Stretches Into 2027
Chevron CEO Mike Wirth says oil and diesel buffers that cushioned the Iran war have been exhausted, leaving inventories low and markets vulnerable. The IEA sees no meaningful diesel stock rebuild until the second half of 2027. U.S. prices hit records above $6 a gallon. Higher costs threaten supply chains and economic activity.
The International Energy Agency (IEA) warns: diesel prices in Europe could rise until 2027. The fuel crisis highlights a growing vulnerability of the European Union: its refining capacity has been declining for some 15 years.
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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IEA Warns Diesel Supplies Could Remain Tight Into Next Year
(NAFB.com) – Diesel supplies could remain tight well into next year as disruptions in the Middle East and Russia limit production, according to the International Energy Agency. The agency says combined diesel export losses from the two
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