The world's diesel crisis has no quick fix but there is a way out
The problem is well-known – the world is desperate for diesel. Two major wars have disrupted the delivery of this indispensable industrial fuel. But as presidents beg and bargain, is there really any solution? At the start of the year, it was already clear that diesel could be a problem . The world seemed to have ample crude oil, but the capacity of refineries – which convert crude into diesel,…
The world is currently facing a significant diesel crisis, with no quick fix available. The issue has been exacerbated by a series of factors, including disruptions in diesel supply due to recent wars and refinery closures. Despite the ample availability of crude oil, refineries have limited capacity, resulting in a shortage of diesel fuel. This shortage has led to rising diesel prices, with average US diesel prices increasing from $3.48 per gallon at the beginning of the year to $6.18 per gallon.
The Gulf countries have invested heavily in modern refining complexes to produce diesel and jet fuel, meeting EU standards. However, these refineries have faced attacks from Iran and its allies, causing further disruptions in diesel supply. Moreover, the Strait of Hormuz remains under strikes, making it difficult for the Gulf refineries to export their products freely.
Russia, a significant diesel exporter, has also been affected by the conflict, with Russian diesel exports nearly reaching zero. In a bid to alleviate the crisis, the US has lifted sanctions on Russian diesel imports, allowing for a limited influx of Russian diesel into the country. However, this supply is insufficient to address the global diesel deficit.
China, currently unaffected by the war, has the only major refining complex that is running below capacity. However, after US President Donald Trump requested more diesel, China banned fuel exports, leaving this potential solution unfeasible. Despite efforts by the US and other nations to address the crisis, the options available are limited, and the situation remains dire.
Written by urgent.news from The National Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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