Diesel Prices Soar as Middle East Conflict Tightens Global Supply

The global diesel market is facing significant supply pressures due to disruptions in refineries and export routes in the Middle East and Russia. According to the International Energy Agency (IEA), Brent crude prices have risen more than 40% since the conflict began in late February, with diesel prices reaching record levels in Europe and North America.

The IEA's latest Oil Market Report highlights that diesel markets are particularly strained, with up to 3 million barrels per day of Middle East refining capacity unavailable since the conflict began. This has led to a 75% decline in exports of refined oil products from Russia and the Middle East in August.

Russian refineries have also been affected by Ukrainian drone attacks, with output falling by 30% year on year in June to its lowest level in over 20 years. In response, the Russian government has restricted diesel exports and begun importing gasoline to maintain domestic supplies.