IEA warns of diesel shortage extending to 2027

Summarised from 2 outlets · Updated 15 Oct, 18:32 · Archive

The International Energy Agency warned that global diesel shortages could persist until 2027 due to wars in Ukraine and the Middle East.

The International Energy Agency warned on Wednesday that diesel shortages could persist well into 2027 due to wars in Ukraine and the Middle East. Combined losses of diesel exports from Russia and the Middle East reached 1.3 million barrels a day in September, representing about 4.5% of global diesel demand. The agency said 'record diesel prices are already having broad economic consequences by raising the cost of goods and impacting real incomes, economic activity, and inflation'.

Even as global refinery operations are predicted to improve towards the end of the year, this will be insufficient to offset current losses in markets for diesel, gasoil and jet fuel. The supply shortage is expected to remain tight in the first six months of 2027, with conditions only easing in the second half of the year.

On Thursday, IEA members agreed to release more than 20 million barrels of diesel 'as soon as possible'. This is equivalent to less than one day of global diesel demand or slightly more than five days of U.S. consumption. The Group of Seven nations said on 2 October they would deploy substantial diesel stocks over 20 days. The IEA, headquartered in Paris, has more than 30 member states and was created in 1974 to maintain energy security through deploying oil stockpiles in response to crises.

How it is being reported

• International Energy Agency to release more than 20 million barrels of diesel as soon as possibleThe Trump administration pushed Europe to release diesel stocks as prices in the U.S. surged to record highs in September.CNBC · 15 Oct, 17:47
• Global diesel shortages could drag into 2027, IEA warnsThe world's diesel shortage could persist well into 2027 due to the ongoing wars in Ukraine and Iran, resulting in high fuel prices and economic stagnation around the globe, the International Energy Agency (IAE) warned on Wednesday.New York Post · 14 Oct, 19:59

In this story: International Energy Agency · Ukraine · Middle East · Russia · Paris

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