Crude Flows Return, But Diesel Prices Soar to Record Highs

Crude oil flows through the Strait of Hormuz have returned to prewar levels, according to research from Goldman Sachs, JPMorgan, and Kpler. Exports transiting through the Strait have hit a seven-day average of 13.5 million barrels per day, matching the prewar baseline.

However, pricing remains a source of pain, with refined product supplies remaining constrained. Shipments are still far below average levels. US President Donald Trump has said he is considering a ban on diesel exports in an effort to bring down prices, which have recently hit record highs at the pump.

Brent and WTI crude oil futures are both lower in early trading on Thursday. This comes as global stock markets face jitters over bond market concerns. Treasury yields remain elevated despite a softer inflation reading in the US, with PCE for August up 3.4%.