G7 nations launch 100 million barrel emergency reserve move against global diesel crisis
Against the global diesel crisis deepened by supply bottlenecks and refinery losses, G7 countries are intervening in the market with a 100 million barrel emergency reserve move.
As the global diesel crisis deepens due to supply bottlenecks, refinery losses, and rising prices, G7 countries are intervening in the market with a 100 million barrel emergency reserve move.
Global Supply Bottleneck
In diesel, which provides the energy for heavy loads ranging from trucks to tractors, construction machinery, and ships, the global market is experiencing one of the sharpest supply crunches in recent years. The issue is not just the increasing cost of oil, but the extensive shutdown of refineries in the Middle East and Russia.
Export Declines and Price Shocks
Before the war in Iran, the Middle East accounted for 19% of global diesel exports, and Russia accounted for 11%. While the price shock is reflected in records, retail diesel reached $6.53 per gallon in the US and €2.54 per liter in the EU.
G7 Intervention
G7 leaders decided to release a total of 100 million barrels of crude oil and diesel from strategic reserves into the market within four months. Experts note that this move will merely buy time until the crisis is permanently resolved.
Reflections on the Industry and Turkey
While a trucker filling up 572 liters on US highways costs $944, small trucking companies are facing bankruptcy. In Turkey, the liter price of motor diesel in Istanbul saw 100.31 liras on September 17, and receded to 97.10 liras on October 1.