Strikes on Russian energy worsen global diesel shortage — MarketWatch
In Russia, Ukraine’s strikes on oil refining and energy facilities have intensified problems with global diesel fuel supplies. Russia, as an aggressor state, has imposed a ban on diesel exports, removing around 800,000 barrels of fuel per day from the market, MarketWatch reports.
Before the ban, Russian diesel was supplied mainly to Turkey, Brazil, and some African countries, where Russian petroleum products are not under sanctions. The publication notes that the search for alternative supplies in these countries has reduced diesel inventories in Europe and increased the role of the United States in fuel supplies.
Decline in refining
According to Kpler analysts, global oil refining, which includes the production of diesel and gasoline, currently amounts to about 80 million barrels of fuel per day. The typical level for this period is approximately 86 million barrels per day. At the same time, around 40% of Russia’s refining capacity is not operating, while the escalation of the conflict in the Middle East has also affected Saudi oil refineries and other energy facilities.
Debnil Chowdhury, head of refining and marketing at S&P Global Energy for the Americas and Europe, said that rising diesel prices are not immediately reflected in consumer costs, but their effects may spread through the economy over three to six months. According to him, this could affect economic growth rates through the end of 2026 and next year.
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Risks to fuel and grain
On Thursday, Brent quotes exceeded $107 per barrel and WTI exceeded $102. Both contracts have risen by nearly 80% since the beginning of the year. Wheat futures have gained more than 46% over the year, with around half of this growth occurring in the past three months.
Attacks on grain terminals in the Black Sea remain a separate risk, as they could limit exports of wheat and other food products. Tatiana Mitrova, an expert at Columbia University’s Center on Global Energy Policy, noted that Russia is trying to redirect grain exports through the Baltic Sea, but these volumes are significantly smaller than those via the Black Sea.
On Wednesday, a drone attack caused a fire at gas facilities near Novy Urengoy in northern Siberia. According to Mitrova, Ukraine is carrying out larger-scale strikes, including repeated attacks on facilities, which complicates their repair and extends downtime.
