Novak: Global diesel supply deficit reaches 25% of world trade, barrel approaches $200

According to Anadolu Agency, Russia's Deputy Prime Minister Aleksandr Novak said at the main session of Russia's Energy Week held in Moscow on October 16 that there is a serious supply deficit in the global diesel market, and this deficit corresponds to approximately 25% of world trade.

Novak outlined two main sources of the shortage: the halt of shipments from the Persian Gulf countries to international markets and Russia's ban on diesel exports from July onwards to support domestic supply.

On the price side, the picture is striking: while crude oil is at around $120 per barrel, diesel prices have approached $200 per barrel. In Turkey, this difference is felt at every fuel station fill-up; for vehicles in Istanbul, it means an additional cost of 15-20% per fill compared to last year.

Assessing the Russia-US diesel shipment agreement, Novak argued that the agreement is a pragmatic decision for all market participants. Responding to EU criticism, he said that European partners' political stance conflicting with market realities is a familiar situation.

The global diesel shortage directly affects Turkey's import bill; behind the fuel price revisions recently announced by the Energy Market Regulatory Authority (EMRA), this global supply pressure lies.