Diesel supplies could remain tight well into next year as disruptions in the Middle East and Russia limit production, according to the International Energy Agency.
The agency says combined diesel export losses from the two regions reached 1.3 million barrels per day in September. Attacks on energy infrastructure and reduced refining capacity have pushed diesel refining margins to record highs, nearing 95 dollars per barrel.
The IEA warns the high prices are already affecting the broader economy. “Record diesel prices are already having broad economic consequences by raising the cost of goods and impacting real incomes, economic activity, and inflation,” the agency said in its monthly oil market report.
Although global refinery operations are expected to recover toward year’s end, the agency says that rebound will not fully replace supplies lost this year. Diesel markets also face seasonal pressure from refinery maintenance and rising winter demand.
