Global fuel shortage spreads to diesel
Global supplies of diesel are dwindling as refiners struggle to keep pace with rapid post pandemic demand recovery, exacerbating an acute global energy shortage which has already sent the prices of gas, coal and crude oil soaring.
At a time when global central banks are fretting over inflation rates not seen for decades, diesel shortages would push up fuel and transportation costs further and add more upward pressure on retail prices.
Refiners generally respond to high margins and low inventories by ramping up output. But the global oil refining complex is under strain, with capacity falling for the first time in 30 years last year as closures outweighed new additions.
A number of refineries-particularly in the US-are still running plants at rates below the five-year average to avoid producing too much jet fuel, where demand still lags 2019 levels, leaving companies struggling to identify a clear way to restock diesel inventories in the short term.
