The key facts

  • Global oil reserves have decreased by approximately 1 billion barrels amid the Middle East conflict
  • Diesel fuel reserves in a number of markets have reached their lowest seasonal level in 35 years
  • The head of ADNOC called for creating additional capacity for oil storage and fuel refining closer to consumers

Global fuel reserves are shrinking

Countries need additional capacity for oil storage and fuel production in order to withstand possible serious disruptions in supplies through the Strait of Hormuz. This statement was made by the CEO of the Abu Dhabi National Oil Company (ADNOC), Sultan Al Jaber, his remarks were reported by Bloomberg.

What is happening on the markets

According to Gazeta.Ru, the conflict in the Middle East has, according to Al Jaber's assessment, caused chaos in supply chains and on the energy market. As a result, global oil reserves have decreased by approximately 1 billion barrels. The situation with diesel fuel is even more tense: in a number of markets, its reserves have fallen to the lowest seasonal level in 35 years. At the same time, a shortage of liquefied natural gas is also being observed.

Context: Russia's ban on diesel exports

Against this backdrop, the Russian government last week extended the temporary ban on diesel fuel exports by producers until January 31, 2027. The press service of the Cabinet of Ministers explained that the measure is aimed at maintaining a stable situation on the domestic fuel market. Earlier, Deputy Prime Minister stated that Russia has accumulated the necessary volume of winter diesel.