Diesel desperation is mounting globally
Summary
Global diesel supplies are shrinking due to unrest from the Russia-Ukraine war and the Iran crisis. This has caused diesel prices to rise worldwide, affecting industries that rely on diesel fuel.Key Facts
- Diesel prices in the U.S. rose by 44 cents last month to $5.32 per gallon, higher than a year ago but below the 2022 peak of $5.82.
- Refineries globally processed 7.5 million fewer barrels of crude oil daily last month compared to 2025.
- Conflicts in the Middle East, including the Strait of Hormuz, have reduced refinery operations and diesel supply.
- Russian diesel exports dropped by 10% due to restrictions after drone strikes damaged their refineries.
- Diesel exports from Russia, the Middle East, and Asia fell by 1.3 million barrels per day in July, about 20% of global sea trade.
- U.S. refineries are operating at 96% capacity and increasing diesel exports amid the tight market.
- The U.S. Energy Information Administration raised its diesel price forecast for 2026 and 2027.
- Diesel is critical for trucking and heating, making supply tightness a concern for the coming winter.
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