Global diesel shortage: why Gulf refined fuel exports lag crude oil shipments
Global diesel prices remain near record highs as Gulf producers struggle to restore refined-fuel exports, despite a recovery in crude shipments and pledges by more countries to release reserves. Net diesel exports from Gulf countries averaged 390,000 barrels per day in August, just over a quarter of their levels before the US-Israel war on Iran, according to the latest available data by the…
Gulf nations struggle to resume refined fuel exports, despite crude shipments rebounding, as diesel prices soar near record levels following the US-Israel conflict with Iran. The International Energy Agency (IEA) reported that August net diesel exports from Gulf countries averaged 390,000 barrels daily, only a quarter of pre-war levels.
The Gulf's infrastructure is primarily designed for crude oil, complicating the shipment of refined fuels, according to analysts. Middle Eastern crude exports have recovered swiftly via ship-to-ship transfers, yet exporting refined fuels remains challenging due to the need for separate shipping arrangements for various products.
The G7 announced plans to release 100 million barrels of crude and refined fuels, but analysts say this limited release will only temporarily alleviate the diesel shortage. Global oil inventories have plummeted by 507 million barrels since the Iran war commenced, heightening the urgency to resolve conflicts in the Middle East and Russia-Ukraine.
Recent reports suggest Russia may supply over 300,000 tonnes of diesel to the US and global markets, potentially easing prices, although analysts remain skeptical of the impact.
Written by urgent.news from South China Morning Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
