Shipping Fuel Shortage Expected as Refiners Shift Focus to Diesel
A shortage of fuel oil for the shipping industry is emerging due to refiners prioritizing diesel production amid ongoing supply disruptions. According to Energy Aspects, Asia will be most affected by a projected daily shortfall of 218,000 barrels in Q3 2026 — significantly higher than the previous year's shortage of just 6,000 barrels per day. The crisis is driven by reduced crude supply from the Middle East and damage to regional refining capacity. The International Energy Agency estimates that up to a fifth (9.6 million barrels daily) has been lost due to hostilities in the region. Additionally, Ukrainian drone attacks have disrupted diesel production in Russia, prompting an export ban there. Refiners are unlikely to shift their focus from diesel soon as low inventories of gasoline and diesel globally encourage continued prioritization of these products over fuel oil, which is used for shipping and some power generation.
Topics: diesel shortage energy crisis refinery operations shipping