20:39 13 October 2026
Saxo Bank expert: diesel prices suffocating global economy
Diesel shortages, rather than rising gasoline prices, are emerging as a greater risk to the global economy, according to Saxo Bank experts. Diesel powers freight, construction, mining and farm equipment, while related fuel products support aviation, shipping and heating. Supply has tightened because of refinery disruptions, depleted inventories, Middle East conflict and Russian export restrictions. Increasing crude oil production alone cannot quickly ease the shortage because refineries need suitable crude, capacity and infrastructure to produce usable fuels. Diesel futures have reached a historically high premium over Brent crude, the article says.
Since businesses cannot readily cut diesel use, higher costs can spread through supply chains, pushing up prices while weakening economic activity and raising stagflation risks. Lower crude prices may offer little relief until refining supply improves.
