Diesel shortage set to drag on into late 2027, ene...

Summary

• Global diesel exports in September stood 700,000 barrels a day below their level a year earlier.
• Across all fuels, the agency now sees world oil demand dropping by 2.6 million barrels a day on average in 2026.
• Supply, meanwhile, should shrink by 5.8 million barrels a day this year.

AI Generated Summary

The global diesel shortage will last well into 2027, the International Energy Agency said on Wednesday, as war-related losses drain stocks.

In its October Oil Market Report, the agency said the market would remain tight until the second half of next year. Heavy stock draws, it added, had stripped away “crucial stock cover” before the winter peak.

Global diesel exports in September stood 700,000 barrels a day below their level a year earlier. Russia and the Middle East lost 1.3 million barrels a day of supply. Other producers only partly made up for it.

Diesel shortage drives record prices

As a result of the diesel shortage, wholesale prices soared. In mid-September, diesel cost more than $200 a barrel in Singapore, while Europe and the US saw record levels near $220.

“Retail diesel prices have risen in tandem to record levels in most major economies,” the agency said. In the US, for instance, the cost at the pump topped $6 a gallon in September, a first.