Last week, diesel prices in the United States surpassed $6.50 per gallon, setting a new record. Simultaneously, fuel costs across Europe are escalating, and the continent faces looming shortages, adding pressure to economies already under strain.
The primary factor contributing to this situation is an insufficient global refining capacity, which is struggling to compensate for reduced supplies from the Middle East and Russia. There is currently no immediate solution to this capacity shortfall.
Further compounding the issue, Russia announced an extension of its diesel export ban until the conclusion of October. This decision follows continued drone assaults on Russian refining infrastructure, an issue that has persisted despite calls from former US President Donald Trump for the Ukrainian government to cease such attacks.
This information was originally reported by OilPrice.com.