Diesel squeeze set to last well into 2027 as Iran war disrupts supply, IEA says
The agency said depleted inventories and refinery damage will keep prices near record highs, with global diesel exports down 700,000 barrels a day in September.
- 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.
148 Articles
148 Articles
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 Diesel Crunch Will Persist Well into 2027
The recent rise in crude oil flows out of the Strait of Hormuz isn’t solving the world’s most pressing fuel problem—the diesel crunch and record diesel prices that start to feed into the wider economy. While Middle East crude oil flows are nearing pre-war levels, global diesel supply is much lower due to refinery constraints in the Middle East and Russia that the rest of the world cannot offset. The diesel squeeze hiked wholesale and retail pric…
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
The global diesel market is facing severe shortages as geopolitical tensions, refining constraints and low inventories add to upward pressure on prices. According to Bank of America’s Global Energy Weekly, government interventions can provide temporary relief but fail to address the underlying market imbalances. The global market for middle distillates, which includes diesel, has been severely tight, with gasoil refining margins at ICE close to …
Cyprus fuel costs face fresh pressure as IEA warns shortages will stretch into 2027
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 […]
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