Diesel Prices Skyrocket Amid Global Conflict

Global diesel prices have skyrocketed due to a combination of factors, primarily driven by conflicts in major oil-producing countries. Russia and Saudi Arabia, two of the world's largest oil producers, are impacted by war, resulting in reduced oil and diesel exports.

According to the International Energy Agency (IEA), net diesel exports from these regions fell by 1.6 million barrels a day in August, accounting for almost half of the diesel traded by sea. Russia has been particularly affected, with its diesel exports plummeting to below 1 million metric tons in June, down from 2.5 million tons a year earlier.

Refineries in Saudi Arabia, Kuwait, and other Gulf countries have also been hit, including Ras Tanura, the largest refinery in Saudi Arabia. The consultancy IIR estimated that the war had shut 1.9 million barrels a day of refining capacity by early March, with some estimates as high as 3.52 million barrels a day by May 7.