Global Diesel Crunch Worsens Ahead of Peak Winter Demand
Record U.S. exports and refinery outages are draining inventories, with Europe’s diesel prices up 40% since mid-June, Bloomberg reported.
- Global diesel supplies tightened on Thursday as the United States hit a record export rate of 1.9 million barrels per day in early August amid mounting production disruptions.
- Russia's export ban following Ukrainian drone strikes removed 10% of seaborne supplies, while persistent Middle Eastern refinery disruptions remain 'physically impaired, logistically stranded, or operationally unable to restart with confidence.'
- AAA data shows the average U.S. price reached $5.32 per gallon, up 44 cents over the last month, while European diesel prices surged 40% since mid-June.
- Energy Aspects founder Amrita Sen said, 'Diesel is the tightest market right now,' as analysts warn the situation could worsen this winter with supply locked due to ongoing conflicts.
- The Energy Information Administration forecasts retail prices averaging $4.85 per gallon in 2026, up from $4.61, and raised its 2027 forecast average to $4.07, up from $4.02.
15 Articles
15 Articles
Diesel prices surpass jet fuel in Europe as global supply tightens
European diesel costs more than jet fuel for the first time in over a year. Jet fuel imports to Europe have risen significantly while diesel imports have dropped. Global diesel supply tightened further after Russia banned its exports. This price shift reflects ongoing supply challenges and demand dynamics. Analysts note persistent scarcity pricing risks for diesel heading into winter.
Ukrainian And Houthi Strikes On Energy Infrastructure Send Diesel Futures Surging 7.4%
Global diesel prices are climbing sharply as coordinated attacks on refining infrastructure across two continents push an already strained fuel market closer to breaking point. Ukrainian strikes on Russian refineries have removed significant processing capacity from global supply chains at a moment when the market had little room to absorb further disruption. Simultaneously, Houthi attacks on Saudi energy infrastructure have compounded the suppl…
Diesel desperation is mounting globally
The state of the global diesel market is getting even more precarious as the Russia-Ukraine war and the Iran crisis squeeze supply from multiple angles.Why it matters: Diesel prices ripple through economies here and abroad, affecting shipping costs, construction and plenty in between.The average U.S. price is up 44 cents over the last month to $5.32 per gallon, compared to $3.71 a year ago, per AAA.However, during the Iran crisis, it hasn't hit …
After attacks on refineries in Russia and Saudi Arabia, there is a shortage of quantities on the world market. This caused the profit margins of European refineries at Diesel to rise by ten percent. Domestic motorists could thus soon again face higher prices. Once again, the current wars are likely to have a direct impact on Austria. As is well known, Ukraine attacked one of the largest oil refineries in Russia on Monday – and the pro-Iranian Hu…
Global Diesel Crunch Worsens Ahead of Peak Winter Demand
As peace in the Persian Gulf remains elusive and Ukrainian drones keep raining on Russian refineries, a global fuel crisis is looming larger by the day as demand is set to increase in the coming months, especially for diesel. Shortages are already reality in some parts of the world. In Southeast Asia, Reuters reported last week, palm oil farmers are seeing diesel supply shortages and spiking prices. In the United States, diesel fuel exports hit …
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