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Diesel shortages intensify as demand rises into peak winter season
U.S. diesel exports averaged 1.9 million barrels per day in the first week of August, while Russia has banned diesel exports after refinery disruptions from Ukrainian drone attacks.
A widening global diesel crunch is set to worsen as demand rises into the peak winter period, with supply already strained in multiple regions, OilPrice reported.
The outlet cited geopolitical and operational pressures, including continuing instability in the Persian Gulf and Ukrainian drone attacks that have disrupted Russian refining.
In the United States, diesel fuel exports hit an all-time high in the first week of August, averaging 1.9 million barrels per day. In Russia, the world’s number two diesel exporter has banned exports to address a local supply squeeze tied to the refinery attacks.
Europe faces additional headwinds as refinery disruptions and closures reduce available capacity, with OilPrice saying as many as 30 refineries closed between 2009 and 2024 and 400,000 barrels per day of capacity is set for closure in 2025 due to tighter emissions rules. The situation also leaves the region competing for barrels with alternative sources such as Brazil and Turkey, as well as U.S. exports.