Supply crunch in the global diesel market could last until 2027
The International Energy Agency announced that the supply contraction and high prices in the global diesel market will continue to exert an impact until the first half of 2027.
According to the report by the International Energy Agency, the supply crunch and record-level prices in the global diesel market may continue until the first half of 2027.
Pressure on the Oil Market
Despite the increase in crude oil flows from the Middle East, Brent crude hovering above $100 continues to create pressure on energy markets.
Export Losses and Rates
Diesel export losses originating from the Middle East and Russia reached 1.3 million barrels per day in September, which corresponds to 4.5 percent of 2026 global demand.
Refineries and Record Margins
While the increase in refinery activity is expected to support inventories, it was stated that this will not be enough to close the deficit in middle distillate products and that refining margins broke a record at $95.
Economic Risk and Scope of Impact
Since diesel is used in a wide range of areas from trucks to agricultural machinery, it poses a greater economic risk than gasoline prices and directly affects costs.