EIA: intensifying diesel squeeze highlights broader oil market strains

Published by Ellie Brosnan, Editorial Assistant
Hydrocarbon Engineering, Monday, 14 September 2026 09:00

Oil markets remain under intense pressure as disruptions to crude and refined product supplies from the Strait of Hormuz crisis continue to ripple through global markets. While crude oil prices have risen sharply, the impact on refined products has been even greater – with market tightness now particularly severe for diesel, according to the International Energy Agency's (IEA) latest Oil Market Report.

The squeeze reflects severely constrained product exports from the Gulf, compounded by disruptions to Russia’s refining system and a near-halt in its product exports following intensified Ukrainian attacks. Together, net diesel and gasoil exports from the Gulf and Russia were 1.6 million bpd lower in August than before the Middle East conflict.

With the conflict continuing to disrupt oil flows, the IEA have lowered the forecasts for both global oil supply and demand this year. Inventories have so far played a critical role in balancing the market, but global observed oil stocks have fallen by more than 500 million bbl since the start of the war. With buffers shrinking and the global refining system increasingly stretched, oil markets remain vulnerable to further tightening.

Read the full report from the IEA here.

Read the article online at: https://www.hydrocarbonengineering.com/refining/14092026/eia-intensifying-diesel-squeeze-highlights-broader-oil-market-strains/

The Hydrocarbon Engineering Podcast

A podcast series for professionals in the downstream industry featuring short, insightful interviews. Subscribe on your favourite podcast app to start listening today.