Global Diesel Supplies Tighten Amid Gulf, Russia Disruptions

Global diesel supplies are tightening due to supply losses from Gulf countries and Russia. The intensified Ukrainian attacks on Russian refineries and export infrastructure have reduced Moscow's energy revenues, while disruptions to oil and petroleum product exports from Gulf countries have added to the supply losses.

The Strait of Hormuz disruption is exacerbating the situation as it affects not only crude oil supplies but also the direct trade of petroleum products. According to the International Energy Agency (IEA), around 5 million barrels per day of petroleum products normally pass through the Strait of Hormuz, and a sharp slowdown in these flows has increased supply losses.

Net diesel and gasoil exports from Gulf countries averaged 390,000 barrels per day in August, remaining only slightly above one-quarter of pre-war levels. Combined net diesel and gasoil exports from the Gulf countries and Russia were 1.6 million barrels per day lower in August than in February.