Refinery Attacks Worsen Global Diesel Supply Squeeze

A string of strikes on refining facilities has knocked out significant diesel production capacity, worsening an already strained global market that had been grappling with low inventories and robust demand. Lost volumes are being replaced with imports from other regions, adding pressure to tanker availability and shipping routes. Rising diesel prices are hitting trucking companies, farmers and manufacturers, for whom fuel represents a major cost. Energy-intensive economies that rely heavily on refined product imports are particularly exposed to the squeeze. Traders note that diesel's price premium over other fuels keeps widening, reflecting fears of further supply disruptions. The episode is a reminder to investors of how fragile global fuel supply chains remain, boosting interest in commodities as a hedge against such shocks.