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IEA warns diesel supply tightness to last until late 2027 amid record prices and geopolitical risks

Market News
14 Oct 2026
CNBC
View Source
Bearish
IEA warns diesel supply tightness to last until late 2027 amid record prices and geopolitical risks

The International Energy Agency (IEA) warns that diesel supply constraints will persist into the second half of 2027 due to heavy inventory declines and strong demand despite rising refinery output. Diesel exports dropped by 700,000 barrels per day year-on-year in September, with prices hitting record highs globally, driven by supply losses from Russia and the Middle East. The IEA also cautions that geopolitical tensions, including attacks in the Gulf and the ongoing Iran war, could disrupt the fragile oil market recovery. A recent deal for Russian diesel supply is expected to have minimal impact on easing the tight market conditions.

Diesel supply constraints are expected to last well into 2027 due to geopolitical tensions and inventory declines, according to the International Energy Agency. For readers following the energy sector, here is Pluang's market snapshot as of Oct 14, 2026 14:21 WIB: out of 79 priced US energy stocks, 56 rose and 21 fell today. Notable movers include PTEN at USD 11.49 with a 1-day change of +1.46% and a typical hold time on Pluang of 3 days, FTI at USD 70.68 up 1.33%, and UGP at USD 7.79 down 1.33% with 100% buy order activity.

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