The world is facing a diesel shortage this winter due to the wars in Ukraine and Iran – Reuters
Kyiv • UNN
The market is short about 4 million barrels of oil products per day due to the wars and constrained refining capacity. Diesel in the US has risen to a record high.
Global diesel supplies will remain constrained throughout the winter due to a lack of available refining capacity, reduced supplies from Russia and the Middle East, and a seasonal increase in demand. Overall, the market is short approximately 4 million barrels of petroleum products per day, Reuters reports, citing executives at energy companies, according to UNN.
Details
Vitol CEO Russell Hardy said that the global market had lost approximately 2 million barrels per day due to the situation in Russia. Nearly another 2 million barrels per day had been removed from supplies from the Middle East amid the U.S. war with Iran and damage to oil-refining infrastructure.
There is actually a shortage of petroleum products because we are missing 2 million barrels per day from Russia and nearly 2 million barrels per day from the Middle East
Global fuel inventories have approached record lows
According to the head of Vitol, there is currently more crude oil than refined petroleum products on the global market. The main problem has been the insufficient amount of available refining capacity, which is forcing countries to continue drawing down accumulated fuel inventories.
We continue to consume the surplus that exists in the world, and we have practically reached the bottom of our inventories
Phillips 66 Senior Vice President Mark Senn added that most U.S. refineries are already operating at maximum capacity. With the winter demand peak approaching and diesel inventories low, the strained market situation may persist over the coming months.
The fuel shortage has already affected prices: last week, diesel in the United States rose to a record level, while the refining margin for diesel reached a record $108.02 per barrel during trading.
Vitol expects that high prices and limited fuel availability could reduce global oil demand by approximately 1.5 million barrels per day in 2026 compared with 2025.