Key facts
- Global diesel supply is facing a severe crunch.
- Prices and refining margins for diesel are surging.
- Attacks on refineries are contributing to the supply crunch.
- Peak winter demand is approaching, increasing pressure on supply.
- U.S. diesel inventories are at a 30-year low.
- Southeast Asia is already experiencing diesel shortages.
- Indian refiners are seeking to purchase 6 million barrels of crude oil on the spot market.
- Disruptions in term crude oil deliveries are occurring due to the Middle East crisis.
- Mangalore Refinery and Petrochemicals Limited and Hindustan Petroleum Corporation Limited are issuing tenders.
- Tenders are for September and October deliveries.
- Indian refiners prefer to avoid routes through the Strait of Hormuz and the Red Sea.
The global diesel supply faces a severe crunch, with prices and refining margins escalating ahead of peak winter demand. This situation is compounded by ongoing attacks on refineries and broader geopolitical instability in the Middle East. U.S. diesel inventories have fallen to their lowest levels in three decades, signaling a critical shortage in a key market. Concurrently, Southeast Asia is already grappling with diesel supply issues, indicating the widespread nature of the problem.