Diesel Shortage Worsens as Russia Extends Ban and US Seeks Oil Releases
Russia has extended its ban on diesel and other fuel exports until October 31, citing harvest demand in the country. The ban has been in place since August and affects about 10% of seaborne diesel shipments.
The US is reportedly asking Germany and France to release 120 million barrels of oil over six months, or face a US export ban on diesel. Energy Secretary Chris Wright said announcements are expected soon, but Gail Tverberg argues that there is no short-term fix to the diesel shortage.
Tverberg believes that economies would need to use middle distillates more sparingly and that diesel will remain dearer than gasoline long enough to justify more investment in heavy oil. Meanwhile, Goldman Sachs reported that Persian Gulf oil exports recovered to 23.3 million barrels a day last week, matching the 2025 average.
In related news, 16 US trucking companies have filed for bankruptcy in less than a month due to record diesel prices, affecting over 250 jobs. The Bank of Korea will also buy about one ton of domestic gold in December, worth around $140 million.