Diesel Shortages and Price Spikes as Global Crisis Unfolds

A global diesel crisis is unfolding as demand peaks in winter months.

The situation is exacerbated by ongoing conflicts in the Persian Gulf and Ukraine, with Russian refineries under attack from Ukrainian drones. This has led to a ban on diesel exports by Russia, which was the world's second-largest exporter of the fuel.

In Southeast Asia, palm oil farmers are facing diesel shortages and higher prices, while in the US, diesel exports have hit an all-time high at 1.9 million barrels per day in August.

The EU is particularly vulnerable due to recent refinery closures and Brussels' emission reduction rules, which have increased costs for refiners. 'Europe has a tremendous diesel problem,' said Eugene Lindell of FGE NexantECA.