The world has eroded its supply buffers by draining nearly 1 billion oil barrels from global inventories since the Iran war disrupted shipping through the Strait of Hormuz, CEO of Abu Dhabi's oil company ADNOC Sultan Al Jaber said.
Diesel stockpiles in some areas are at 35-year lows for this time of the season, while others face an LNG supply gap of 600 billion cubic feet, he said at the UAE's ADIPEC conference.
Prices of diesel in many markets have surged to record highs, boosted by wartime supply disruptions and pose inflation and cost-of-living threats to governments and consumers.
The cost of shipping and logistics has risen to 30% of the cost of a barrel, from 5% before the Iran war, Al Jaber said.
Brent is trading around $110 a barrel, up about 50% from February just before the war began.
Last month, the International Energy Agency agreed to release more than 20 million barrels of diesel to the market and any oil remaining from a record emergency reserves release pledged in March to boost supply and cool soaring prices.
