Global fuel markets are facing continued pressure as constrained refining capacity, disrupted oil shipments and soaring tanker costs make it harder to move crude and refined products around the world.
ExxonMobil and Chevron have warned that supplies of diesel and other refined petroleum products could remain tight, keeping prices elevated as disruptions linked to the Iran conflict continue. Chevron CEO Mike Wirth said in July that there could be further upward pressure on product prices into the third quarter and potentially beyond.
The warning comes as global diesel prices have reached record levels. Reuters reported on September 21 that refinery disruptions and reduced exports from major producers, including Russia, Saudi Arabia and the United Arab Emirates, have sharply tightened global supplies. European diesel futures have more than doubled from their levels at the beginning of 2026, while U.S. retail diesel prices have risen above $6 a gallon.
The current pressure is not simply about crude oil availability. Refiners are already operating at high utilization rates, leaving limited spare capacity to produce additional diesel, gasoline and jet fuel.
ExxonMobil said its U.S. refineries operated at high capacity and achieved record diesel production during the second quarter. Chevron also reported record U.S. refinery throughput of more than 1 million barrels per day. Despite those efforts, both companies have warned that the refining system cannot sustain exceptionally high utilization indefinitely.
Maintenance requirements and unexpected refinery outages could therefore create additional pressure on fuel supplies.
The transportation of crude has become another major challenge.
The Strait of Hormuz remains a crucial route for global energy shipments, while conflict-related disruptions have forced traders and producers to use longer and more expensive shipping arrangements.
A tanker shortage has pushed shipping rates sharply higher. The Wall Street Journal reported that the cost of hiring some very large crude carriers has exceeded $1 million per day, as longer voyages and congestion tie up available vessels.
Higher freight costs increase the delivered cost of crude for refiners, putting additional pressure on fuel markets even when crude prices themselves decline.
Diesel has become one of the most vulnerable parts of the global fuel market because it is heavily used by trucking, agriculture, construction and industry.
In the United States, diesel prices have risen substantially over the past year. Reuters reported that U.S. refineries were operating at about 97% capacity, while domestic diesel inventories remained well below their five-year seasonal average.
The situation is also being affected by disruptions to Russian refinery operations and lower exports from China following the conflict.
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Mohd Hassan has extensive experience in news gathering, editing, and writing for the newswire industry, Contact – Info@impactnews-wire.com
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