The IEA warns that record diesel prices threaten to fuel inflation and weigh on growth, as supply disruptions in the Middle East and Russia could keep global markets short into next year. In September, the Middle East and Russia lost a combined 1.3 million barrels per day of diesel exports, about 4.5% of forecast global diesel and gasoil demand this year. Diesel refining margins hit record highs near $95 per barrel in September, while inventories continue to be drawn down. The agency expects the market to return to surplus around 2027, but warns that recent attacks on Middle East energy infrastructure and tanker traffic could derail recovery. IEA members have pledged 426 million barrels from emergency reserves, with about 100 million barrels yet to be released.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on myanmarnews.net ↗
Related news
- Diesel crunch could persist into 2027 as supply disruptions bite
Record diesel prices are threatening to fuel inflation and weigh on economic growth, the International Energy Agency (IEA) said. Supply disruptions in the Middle East and Russia cut their combined diesel exports by 1.3 million barrels per day in September, equal to about 4.5% of the IEA's forecast global diesel and gasoil demand this year. The IEA warned inventories keep eroding, so tightness could last into 2027, while diesel refining margins hit a record of almost $95 per barrel in September. IEA members have pledged 426 million barrels from emergency reserves, with about 100 million barrels still to be released. The Trump administration has told EU countries to draw down stocks or face a potential U.S. diesel export ban.
- Diesel crunch could persist into 2027 as supply disruptions bite
The International Energy Agency says record diesel prices are threatening to fuel inflation and weigh on growth, as supply disruptions in the Middle East and Russia cut their combined diesel exports by 1.3 million barrels per day in September, about 4.5% of forecast global diesel and gasoil demand this year. Diesel refining margins hit a record of almost $95 per barrel in September as refining capacity was reduced. The IEA expects the gasoil market to be in deficit in the third and fourth quarters and to stay tight through the first half of 2027 before easing. IEA members have pledged 426 million barrels from emergency reserves, with about 100 million barrels still to be released. The agency warns oil markets may face more turmoil unless conflicts in the Middle East are resolved.
- Diesel crunch could persist into 2027 as supply disruptions bite
- Diesel crunch could persist into 2027 as supply disruptions bite
- The Diesel Crunch Will Persist Well Into 2027
Even as crude oil flows out of the Strait of Hormuz recover, the global diesel shortage persists because refinery output in the Middle East and Russia remains constrained and other suppliers cannot fully offset the loss. Diesel prices hit records in mid-September, and the G7's promised release of 100 million barrels offers no easy fix. The IEA expects the crunch to extend into mid-2027, as gasoil supply falls short of demand and inventories are unlikely to be rebuilt before the second half of 2027. Global diesel exports fell 700,000 bpd in September from a year earlier, and diesel accounts for 25% of the expected 2.6 million bpd drop in global oil demand this year. Diesel prices have eased from September's peak above $200 a barrel but remain nearly double crude prices.
- The Diesel Crunch Will Persist Well into 2027
Diesel markets remain tight even as crude flows through the Strait of Hormuz recover, because refinery output in the Middle East and Russia is still constrained. The IEA says the shortage will extend into the middle of 2027, and inventories are unlikely to be rebuilt before the second half of 2027. Global diesel exports fell by 700,000 barrels per day in September from a year earlier, and the agency estimates diesel will account for 25% of the expected 2.6 million bpd drop in global oil demand this year. Diesel prices have eased from September's record above $200 a barrel but remain nearly double the price of crude and their pre-crisis levels. The IEA warns that record diesel costs are already affecting goods prices, incomes, economic activity and inflation, while Saxo Bank says extra crude exports cannot resolve the shortage.
Related markets
Latest news
- Meta Earnings: What To Look For From META
Meta Platforms (NASDAQ:META) will report earnings this Wednesday after the market closes. Last quarter, revenue reached $60.8 billion, up 28% year on year and above analysts' expectations, though revenue guidance for next quarter slightly missed forecasts; daily active users hit 3.6 billion, up 3.4%. The market expects revenue growth of 23.6% this quarter, slowing from 26.2% a year earlier, and analysts have generally reconfirmed their estimates over the past 30 days. Over the last month, consumer internet stocks have gained 1.3% on average, while Meta is down 4.8%.
- An AI bust could come from places investors arent watching , an economist says
Concerns about an AI bubble are growing, and TS Lombard's Dario Perkins warns that investors may be overlooking other risks. Debt among smaller cloud providers, model developers and suppliers could reach $2 trillion by the end of 2027. Perkins does not see this as a systemic risk, but warns that earnings disappointments and canceled orders could ripple through the ecosystem, and that a chip glut could follow over-ordering. Much of the industry's revenue growth still comes from spending within the AI ecosystem rather than from businesses and consumers outside it. He also flags political backlash, noting that ordinary people dislike AI and nearby datacenters, and warns that one high-profile accident could turn AI toxic.
- Yen jumps after JGB auction draws big demand , euro finds relief
The yen rose 0.2% to 158.15 per dollar in Asian trading after a 20-year Japanese government bond auction drew bids of 5.84 times the amount sold, well above the 4.01 times at the previous auction, and the yield fell 6 basis points to 3.71%. A State Street strategist said the record demand suggests sidelined cash is returning and that JGBs are becoming a relative haven from political and fiscal volatility in Europe, particularly France. Anti-government protests in France prompted curfews in several cities, while Italy said it would send 500 troops after two days of unrest, and the euro rallied 0.2% to $1.1234. Elsewhere, bitcoin slipped 0.3% to $81,674.25 and ether edged down 0.2% to $2,393.21.
- Unemployment rate dips to 4 . 7 % - but vacancies hit five - year low
Vacancies fell by 21,000 to 691,000 in the three months to September, the biggest drop since the three months to March and the lowest since July to September 2014 outside the pandemic, while unemployment dipped in the three months to August. Payroll numbers were down 66,000 over the year to September. The ONS said the fall was mainly among smaller firms struggling with higher labour costs, following rises in employer national insurance, the minimum wage and workers' rights. A CBI survey found labour costs and regulations were making it harder to create jobs, and firms urged the Chancellor not to add to their burden in the October 28 Budget. ICAEW's Suren Thiru said the labour market is 'running on idle' and unemployment could climb above 5 per cent, while Shadow Chancellor Andrew Griffith blamed Labour's 'Jobs Tax' and red tape.
- CNBC Daily Open: Tech rebounds in the U.S., but Asia isn’t buying it yet
U.S. tech stocks rebounded as the Nasdaq Composite rose more than 1% on Monday, with Nvidia up 1.4% and Tesla up 3.8%. In Asia, however, tech shares fell on Tuesday, with South Korea's Kospi down over 4% and Japan's Nikkei 225 down 1.6%. Nvidia also unveiled plans to back four German AI startups as part of its nearly $10 billion European investment commitment. Jenny Lee of Granite Asia said Asian companies are reaching IPOs much sooner, often at four to five years old, while Jio Platforms' Indian IPO saw its anchor investor quota oversubscribed more than 30 times, aiming to raise up to 302 billion rupees ($3.2 billion). In Singapore, several agricultural stocks fell after Senior Minister K Shanmugam warned that companies would not escape responsibility for possible roles in the haze, noting seven firms had been questioned by the Singapore Exchange.
- NiSource (NI) Stock Looks Overvalued Against Its Dividend Outlook
NiSource has nearly doubled shareholders' money over the past five years, delivering a 97.6% total return, which raises the question of whether dividends can justify the current share price. The article highlights a new 20-year energy agreement with Microsoft, including customer-funded grid upgrades and long-term electric service for data centers, which may affect future capital needs and cash-flow visibility. Using a Dividend Discount Model with inputs of about $1.35 dividend per share, roughly 9.07% return on equity, a payout ratio slightly above 61%, and implied dividend growth of about 3.5%, the estimated intrinsic value sits meaningfully below the current share price of $41.95. The model still does not bridge that gap, suggesting income investors are paying a premium for a relatively steady payout with modest assumed growth.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.