IEA calls for more releases from diesel stocks

Spanish Market: Oil products
11/10/26

The IEA said today that its members should consider further releases of diesel from strategic stocks, 11 days after the G7 agreed what it called a "substantial" diesel release.

Members should see if they are able to accelerate releases to fulfil any remaining commitments agreed in March, when they pledged to make 400mn bl of crude and products available, and should prioritise diesel, the IEA's executive director Fatih Birol said. Any members that have completed their March commitments could consider if more releases are necessary, he said.

The March stock release was weighted two-thirds crude and one-third products, and was in direct response to the effective closure of the strait of Hormuz in the immediate aftermath of the US-Israeli attack on Iran. Middle East crude exports and production have rebounded in recent weeks, although the gains remain fragile.

The IEA's latest intervention has been prompted by a combination of the Iran war and Ukraine's accelerated bombing campaign against Russian refineries in the summer. These have curtailed around one third of global diesel exports and sent refining margins for middle distillates to above $100/bl. Record-high tanker freight rates present an obstacle to moving diesel from any areas of surplus to regions of acute need.

The G7's plan to release more emergency stocks left many questions open. Diesel traders bemoaned a lack of detail on timing and volumes, and although France and Germany have since given some specifics, information on contributions from elsewhere in Europe has been limited. The US appears to be going its own way, with President Donald Trump on 9 October claiming a deal to buy Russian diesel. Moscow has yet to confirm this. Washington prohibited imports of diesel from Russia in 2022 in response to its invasion of Ukraine, and Russia has a diesel export ban in place until the end of October.

The IEA's governing board will meet on 15 October "to take stock" of efforts to release more diesel, the agency said today.

By Ben Winkley

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11/10/26

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Voluntary biodiesel use furthers Brazil climate goals

09/10/26

Voluntary biodiesel use furthers Brazil climate goals

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09/10/26

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09/10/26

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Mexico’s inflation quickens to 3.45pc in Sept.

08/10/26

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