Global Diesel Supply Crunch Reflects on Pumps in Turkey
While supply losses in the Gulf and Russia drive global diesel prices up, they also trigger upward pressure on fuel pump prices in import-dependent Turkey.
Losses in petroleum product supply originating from the Gulf and Russia are creating a crunch in the global diesel market, while also exerting significant upward pressure on pump prices in import-dependent Turkey.
Supply Shortage in Global Markets
Declines in petroleum product supply originating from the Gulf and Russia are causing a supply crunch independent of crude oil in the global diesel market.
Ukraine Attacks and Gulf Disruptions
Ukraine's attacks on Russian refineries and export infrastructure, along with export disruptions in Gulf countries, are adversely affecting global diesel supplies.
International Price Increases
While diesel prices in Germany and France rose in mid-September, the price of a gallon of diesel in the US exceeded 6 dollars in September.
Strait of Hormuz and Shipment Issues
Disruptions in the Strait of Hormuz directly affect not only crude oil flows, but also the trade of millions of barrels of petroleum products daily.
Export Data and Margins
While the total net diesel exports of the Gulf and Russia have declined significantly, this situation has led to a severe increase in refineries' production margins.
Situation and Measures in Turkey
Turkey meets approximately 47 percent of its diesel demand through imports, and has activated the Sliding Scale (Eşel Mobil) system to limit price increases.