Brent Premium Hits Record as Diesel Supply Woes Persist Amid Gulf Relief
Crude oil prices saw relief this week as Saudi Arabia successfully restarted the East-West Pipeline and began moving crude through the Strait again. The pipeline, which had been shut down since January, was a key contributor to the supply bottlenecks that have plagued the market.
Meanwhile, Iraq also increased its exports by adding barrels through Turkey. However, despite these efforts, diesel prices continued to rise, with the premium of gasoil over Brent reaching a record high. This surge in diesel costs has caught the attention of the White House, which is now considering banning diesel exports as a potential solution.
The developments come as an Iranian official floated the idea of reopening the Strait of Hormuz for a seven-day period. While this proposal sparked a brief sell-off in crude prices, it ultimately failed to materialize and did little to alleviate the ongoing diesel supply issues.