Key facts
- Attacks on Russian and Saudi refining facilities have worsened a global diesel supply shortage.
- Diesel prices have reached record highs.
- Indian state-controlled oil refiners are seeking approximately 6 million barrels of crude oil on the spot market.
- Indian refiners are seeking crude for September and October deliveries.
- Indian refiners prefer to avoid routes through the Strait of Hormuz and the Red Sea.
- Russia received its first gasoline shipments from India last week.
- One 42,000-ton gasoline cargo from India arrived in Russia on August 5.
- Russia is importing gasoline to cope with domestic shortages.
- Ukrainian drone attacks have exacerbated Russia's domestic fuel imbalance.
Global diesel and gasoline markets are experiencing significant strain due to a confluence of refinery attacks and geopolitical instability. Attacks on refining facilities in Russia and Saudi Arabia have worsened an existing global diesel supply shortage, leading to record-high prices and concerns about broader inflation as demand increases. In parallel, Middle East tensions are disrupting crude oil deliveries, prompting Indian refiners to seek substantial volumes on the spot market. State-controlled Indian oil refiners, including Mangalore Refinery and Petrochemicals Limited and Hindustan Petroleum Corporation Limited, are looking to purchase around 6 million barrels of crude oil for September and October deliveries. These refiners are specifically seeking to avoid shipping routes through the Strait of Hormuz and the Red Sea, indicating the perceived risks in these critical maritime passages. The severity of domestic fuel imbalances is further illustrated by Russia's recent imports of gasoline from India. Russia received its first gasoline shipments from India last week, with one cargo of 42,000 tons arriving on August 5. These imports are a direct response to domestic shortages, which have been exacerbated by Ukrainian drone attacks targeting Russian refineries. The situation underscores the interconnectedness of global energy markets and the cascading effects of localized disruptions.