Refineries are positioned to benefit significantly from a global diesel shortage, which is expected to persist until at least 2027, according to the International Energy Agency. Despite rising diesel prices impacting the economy, companies like TotalEnergies and Shell are reporting record profits due to high refining margins and increased demand for diesel, a critical fuel for various sectors.
The shortage has been exacerbated by refinery shutdowns in the Middle East and Russia, leading to a drop in global supply. While some refiners are adapting to maximize diesel production, others are struggling with rising costs and lower margins for other fuel products. This situation may lead to a future surplus of diesel, but could also create potential shortages in gasoline as refiners adjust their operations.