Diesel squeeze expected to continue into 2027 despite Trump’s deal with Russia – business live
Summary
The International Energy Agency (IEA) warns that diesel shortages and high prices will likely continue into 2027 due to lower exports from the Middle East and Russia and limited refinery capacity. Despite President Trump’s deal to buy Russian diesel, the IEA says this will not significantly ease the global diesel supply problems.Key Facts
- Diesel supplies are low because of disruptions in exports from the Middle East and Russia.
- Diesel prices have reached record highs, partly because demand remains strong.
- Governments have taken steps to help consumers cope with high diesel costs.
- Oil refiners are earning higher profits due to the diesel price increase.
- The IEA expects diesel inventories to recover only by the second half of 2027.
- President Trump made a deal to buy diesel from Russia, but it likely won’t ease the shortage much.
- Russia’s limited refinery capacity is a main reason why diesel exports are low.
- The US-Russia diesel deal may help Russia’s economy but not reduce US diesel prices significantly.
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