IEA warns diesel shortages to impact global economy through 2027

The International Energy Agency has warned that global diesel supplies will remain limited until 2027, attributing the shortage to supply disruptions caused by tensions in the Middle East and declining exports from Russia and parts of Asia.

In its oil market report, the agency explained that increased shipments from the United States and China have not compensated for reduced exports from Asia. It added that record diesel prices are already having broad economic consequences by raising the cost of goods, impacting real incomes, economic activity, and inflation.

The agency noted that, with ongoing tensions in the crude oil shipping market, diesel prices for deliveries in the coming weeks could rise further in key import markets, including Europe, Africa, and Latin America.

The agency also plans to implement the rapid release of emergency oil reserves as requested by the Group of Seven major industrialized nations.