European diesel costs stay high as oil supply tops demand, IEA says

European diesel prices stay high as global oil supply overtakes demand, IEA says
European diesel prices are still 77% above pre-war levels, the IEA said on Friday. Global oil supplies are expected to exceed demand in the fourth quarter as Gulf exports recover.

European diesel prices remained 77% above pre-war levels even as recovering Gulf exports pushed global oil supplies above demand for the first time since the Iran war began, the International Energy Agency said on Friday.

Prices have fallen sharply in recent weeks, with North Sea Dated crude falling 32% from an early October peak of $136 a barrel to about $93 by the time the IEA wrote its report. European diesel prices fell 11% over the same period, to nearly $180 a barrel.

The IEA said diesel shortages remained the market’s “overriding concern”. Attacks on Russian energy infrastructure continued to disrupt the country’s diesel exports, adding to supply losses in the Middle East. The agency said releasing emergency diesel stocks faster over the coming months would help cover the shortfall while refinery output recovers.