Energy shortages and refining limits drive global market volatility

U.S. Energy Secretary Chris Wright stated that global energy market disruptions are primarily driven by shortages in diesel and other refined petroleum products rather than crude oil supply levels. Speaking in Vienna, Wright noted that limited refining capacity remains a major challenge, exacerbated by Ukrainian attacks on Russian energy facilities. He highlighted that Russia is currently not exporting diesel, further tightening the market.

In a related development, U.S. President Donald Trump has called on Ukraine to cease attacks on Russian oil refineries to prevent worsening global energy instability, noting that Washington has communicated this position to Kyiv. Meanwhile, Kremlin spokesperson Dmitry Peskov stated that Moscow welcomes calls to stop attacks on civilian economic infrastructure. Russia previously implemented a ban on gasoline and diesel exports lasting until January 2027.

Economists warn that these energy supply shocks, combined with rising public debt, present a dual test for the global economy. Persistent energy price volatility could lead to a combination of high inflation and slowed economic growth, complicating the efforts of central banks to manage monetary policy.