Diesel Prices Soar as Global Conflicts Disrupt Oil Exports
The price of diesel fuel has been skyrocketing in recent months due to a combination of factors related to global conflicts and reduced refining capacity. Two of the world's three largest oil producers, Russia and Saudi Arabia, have seen significant disruptions to their oil production and exports as a result of war. This has led to a global shortfall in diesel supply, causing prices to rise.
According to the International Energy Agency (IEA), net diesel exports from Russia and the Persian Gulf in August were 1.6 million barrels per day lower than in February. In February, those two regions accounted for almost 45 percent of the diesel traded by sea.
The IEA also notes that Russia's diesel exports fell below 1 million metric tons in June, against about 2.5 million tons a month a year earlier. Additionally, half of Russia's six largest diesel refineries cut or halted production in September after drone strikes.