IEA warns diesel shortages to impact global economy through 2027
The International Energy Agency says global diesel supplies will remain tight until 2027 due to Middle East tensions and reduced exports from Russia and Asia.
The International Energy Agency (IEA) has issued a warning that global diesel shortages will persist until 2027, primarily due to tensions in the Middle East and reduced oil exports from Russia and parts of Asia. The agency's latest oil market report highlights that even though shipments from the United States and China have increased, they have not been enough to offset the decline in exports from Asia.
The IEA further explains that soaring diesel prices are already causing significant economic repercussions by increasing the cost of goods, lowering real incomes, affecting economic activity, and contributing to inflation.
Moreover, the IEA anticipates that diesel prices may continue to escalate in the coming weeks in major import markets such as Europe, Africa, and Latin America, given the ongoing tensions in the crude oil shipping sector. In response to these challenges, the IEA has pledged to release emergency oil reserves promptly, as requested by the Group of Seven (G7) major industrialized nations.
Written by urgent.news from Ajel English's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
