US EIA projects diesel shortage to persist through 2027

September 21, 2026 at 07:01 PM2 min

This digest was compiled by AI from multiple sources — links to the originals are below.

The U.S. Energy Information Administration projects American diesel inventories will fall below 100 million barrels this month and remain critically low through most of 2027. The global diesel shortage, driven by U.S.-Iran conflict and supply disruptions, has pushed U.S. retail diesel prices above $6.50 per gallon for the first time. European consumers face record prices as well, with France at €2.39 per liter and Germany at €2.47 per liter.

Key Facts

U.S. diesel inventories fell to 108 million barrels this month, the lowest seasonal level in 44 years.
The U.S. EIA forecasts diesel stocks will drop below 100 million barrels this month and stay below five-year averages through most of 2027.
Average U.S. diesel price exceeded $6.50 per gallon for the first time, up more than 60% year-over-year.
Unused storage capacity in North America and the Caribbean reached a four-year high of 13 million barrels, according to Tank Tiger.
Bangladesh raised fuel prices by 17.5%, effective today, Reuters reported.

US Supply Crunch

U.S. diesel inventories dropped to 108 million barrels this month, the lowest level for this time of year in 44 years. The U.S. Energy Information Administration projects stocks will fall below 100 million barrels this month and remain critically low through most of 2027. Attacks on tankers in the Strait of Hormuz, restrictions on Iranian oil exports, and threats to Red Sea shipping have complicated crude transportation. Traders and refiners are not renewing storage leases, leaving 13 million barrels of unused capacity in North America and the Caribbean, a four-year high.

Price Shock

The American Automobile Association reported the average U.S. diesel price surpassed $6.50 per gallon for the first time, a 60% increase over the past year. In France, diesel averaged €2.39 per liter, the highest since April, prompting President Emmanuel Macron to urge the government to prevent fuel shortages. Germany recorded a record €2.47 per liter, while Belgium's economy ministry said prices would exceed €2.50 per liter starting tomorrow, a four-month peak. Diesel inventories in the Amsterdam-Rotterdam-Antwerp hub fell 16% below the five-year norm, according to Insights Global.

Global Ripple Effects

Bangladesh raised fuel prices by 17.5% effective today, Reuters reported. Stanford climate scientist Rob Jackson said high oil prices push people and countries toward alternative energy and long-term decisions favoring renewables.