Moscow - SANA
The diesel supply crisis in global markets has escalated recently, coinciding with a new wave of price increases, following a Russian decision to ban exports at a time when the market faces a shortage in supply due to geopolitical factors and declining inventories.
Implications for the global economy
Reuters reported in a report that the Moscow decision, which came into effect last week, increased the disruption in global energy markets, as Russia is the second largest exporter of diesel in the world after the United States.
Diesel is the most consumed fuel among petroleum products, and its price movements affect the transport, industry, agriculture, and electricity generation sectors, which broadens its impact on the global economy and inflation rates.
Decline in exports
According to data from the global company Kepler, a leader in commodity intelligence and maritime traffic, the average Russian diesel and gas oil shipments reached 234,000 barrels per day during the period from July 1 to 10, compared to 400,000 barrels per day in June, and an average of about 817,000 barrels per day during 2025.
Increasing pressures
According to the Reuters report, pressures on the diesel market worsened with rising tensions in the Middle East after the United States launched new strikes against Iran, which renewed fears about the safety of navigation through the Strait of Hormuz and the potential impact on fuel exports coming from the region.
New US government data also showed a decline in diesel inventories of more than 4.5 million barrels during the week ending July 3, reaching 97.8 million barrels, a level about 6% lower than the five-year average.
Interconnected markets
Although the United States and Europe have stopped importing Russian fuel since the imposition of sanctions on Moscow due to the war in Ukraine, the export ban decision led to higher diesel prices in those markets as well, indicating the close interconnection of global fuel markets, where a decline in supply in any region leads to a reorientation of trade flows and a global rise in prices.
The Russian government announced in a statement last Wednesday the imposition of a ban on the export of diesel fuel for oil companies until the 31st of this month, with the exception of exports carried out within the framework of international government agreements.
The decision, according to Moscow, aims to ensure the stability of supplies in the domestic market and meet internal demand, after a decline in production due to Ukrainian attacks that targeted a number of refineries, and the accompanying rise in domestic demand for fuel.
