The Diesel Crunch Will Persist Well into 2027
The recent rise in crude oil flows out of the Strait of Hormuz isn’t solving the world’s most pressing fuel problem—the diesel crunch and record diesel prices that start to feed into the wider economy. While Middle East crude oil flows are nearing pre-war levels, global diesel supply is much lower d
Source: OilPrice.com
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DW NOTE
The diesel supply shock isn't temporary and the market knows it. Refining capacity lost in 2020–2022 won't return by legislative decree, and the Hormuz closure has severed the primary artery for middle distillate flows into Europe and Asia. Inventories fell 1.9 million barrels per day in Q3 — that's not tightness, that's structural deficit meeting geopolitical chokepoint.