Stories
Global Diesel Shortage to Persist Until 2027 Amid Record Low Inventories
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Firstpost•21-09-2026, 15:56
Global Diesel Shortage to Persist Until 2027 Amid Record Low Inventories
- •A global diesel shortage, exacerbated by conflicts in Iran and Ukraine, is projected to continue until at least 2027 due to depleted inventories and disrupted supplies.
- •The supply crunch has led to historic low inventories and sharply increased diesel prices, impacting agriculture, manufacturing, and heavy transportation sectors worldwide.
- •US retail diesel prices surpassed $6 a gallon for the first time, while US diesel inventories hit their lowest level since 1982, with projections to remain below 100 million barrels through 2026.
- •Europe and Singapore also face tight diesel supplies, with inventories significantly below five-year averages.
- •Potential relief could come from increased refining production and China's rising fuel exports, but escalating conflicts or refinery outages could trigger further price surges.
Key Questions Answered
Industry participants and storage market indicators suggest that the global diesel shortage is unlikely to ease before 2027.
Wars in Iran and Ukraine have disrupted fuel supplies and stranded millions of barrels a day in the Middle East and Russia, pushing US retail diesel prices past $6 a gallon as inventories hit historic lows.
US diesel inventories dropped to 107.9 million barrels as of September 11, marking the lowest level for that time of year since record-keeping began in 1982.
