Shipping fuel shortage could reach 218,000 barrels per day — OilPrice
The global shipping fuel market is facing a reduction in fuel oil supply as refineries prioritize diesel production amid supply disruptions. Asia could be affected most severely by the shortage, OilPrice reports, citing Reuters.
Shortage forecast
According to Energy Aspects, the shortfall of fuel oil for shipping will amount to around 218,000 barrels per day in the current quarter. This could become the first quarterly shortage of this fuel since 2025. At that time, its volume was significantly smaller, at around 6,000 barrels per day.
An analyst at Rystad Energy told Reuters that due to prolonged supply disruptions in the Middle East, fuel oil supply will remain critically constrained in the third quarter.
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Why refineries are choosing diesel
Global refining margins are at record levels amid the energy crisis. Among the factors, OilPrice cites tighter oil supply from the Middle East and damage to refining capacity in the region. According to the International Energy Agency, hostilities have put up to one-fifth of this capacity out of operation, or around 9.6 million barrels per day.
Ukrainian drone attacks have also affected diesel production in the Russian Federation, an aggressor state. As OilPrice notes, Russia introduced a ban on diesel exports, further intensifying market tensions.
Against the backdrop of record-low gasoline and diesel inventories, refiners will seek to maximize the use of secondary processing units, using more fuel oil as feedstock. According to Energy Aspects, this will further reduce the supply of fuel oil used as fuel for ships and at some power plants.
