Russia warns of 25% diesel supply deficit in global trade

Russian Deputy Prime Minister Aleksandr Novak has warned of a significant supply deficit in the global diesel market, estimating that the shortage has reached approximately 25 percent of global diesel trade.

Speaking at Russia Energy Week in Moscow, Novak identified several causes for the tightening supply, including the inability of Persian Gulf countries to ship to external markets and Russia’s own diesel export ban implemented in July to support its domestic market. He noted a sharp rise in prices, stating that while crude oil sits at $120 per barrel, the price for diesel has risen to approximately $200 per barrel.

Novak defended a diesel shipment agreement between Russia and the United States, describing it as a ‘pragmatic decision’ beneficial to all market participants. He criticized the European Union’s opposition to such arrangements, arguing that political decisions in Europe conflict with market and consumer needs, ultimately harming European consumers.

Regarding energy exports, Novak reported that Russia has exported $320 billion in energy resources to Europe since 2022, with $21.3 billion exported in the first nine months of 2026. He emphasized the need for closer international cooperation to ensure energy security as rising prices drive consumers toward alternative sources.