Global Fuel Oil Shortage Hits 218,000 Barrels Daily as Wars Disrupt Supply Chains
· World · Al Jazeera, Financial Times
The global shipping industry faces a severe fuel oil shortage, with Middle East exports down 45% year-on-year to an average of 447,000 barrels per day from March to August. Analysts warn of a 218,000 barrels-per-day deficit in the third quarter, the first such shortfall since Q3 2025. The US-Israel war on Iran has crippled key maritime routes like the Strait of Hormuz, while Iranian retaliatory strikes and Houthi attacks in the Red Sea and Bab al-Mandeb Strait have further disrupted shipping. Ukraine’s drone strikes on Russian refineries also threaten crude oil supplies, as Russia remains the world’s second-largest exporter. Refiners prioritising more profitable fuels have worsened the deficit, raising freight costs and impacting consumers and manufacturers worldwide.
Why it matters
Shippers and manufacturers globally will face higher operational costs as fuel oil prices rise, directly affecting the price of goods and transportation expenses. Countries reliant on imported crude oil, including India, may see increased costs for fuel and commodities, exacerbating inflationary pressures.
Read the original report — Al Jazeera
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