IEA Warns of Diesel Shortage's Impact on Global Economy
The International Energy Agency (IEA) warned on Wednesday that global diesel supplies will remain tight until 2027. It attributed the shortfall to supply disruptions caused by tensions in the Middle East and declining exports from Russia and parts of Asia.
In its Oil Market Report, the IEA said increased shipments from the United States and China have not offset the decline in exports from Asia. It added that current diesel prices are already having broad economic consequences, raising the cost of goods and affecting real incomes, economic activity, and inflation.
The IEA also noted that amid growing tensions in the crude oil shipping market, prices for diesel delivered in the coming weeks could rise in key importing markets, including Europe, Africa, and Latin America.
The IEA intends to carry out the rapid release of emergency oil reserves requested by the Group of Seven (G7) major industrialized nations.
