The International Energy Agency (IEA) has projected that the diesel supply shortage will continue until next year, despite agreements between the United States and Russia on diesel supply and the release of strategic reserves by various countries.
In its monthly oil market report released on October 14, the IEA stated that even with a rapid recovery in refining capacity by the end of the year, diesel supply will fall short of meeting demand in the fourth quarter.
The IEA added, "This suggests that replenishing depleted stocks will be difficult before the second half of 2027."
According to the IEA, global diesel supply last month decreased by 700,000 barrels per day compared to September of the previous year. Additionally, the supply reductions from war-torn Russia and the Middle East amounted to 1.3 million barrels per day.
The IEA analyzed that record-high diesel prices are driving up commodity prices and impacting real income, economic activity, and inflation across the economy.
To address the supply crisis, the IEA announced on October 7 that member countries agreed to accelerate the release of strategic reserves, focusing on diesel, which they had committed to in March.
Furthermore, ahead of next month's midterm elections, U.S. President Donald Trump has recently moved to ease sanctions, agreeing with Russian President Vladimir Putin to supply Russian diesel to the U.S. and global markets.
* This article has been translated by AI.
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