Crude Oil Eases as Diesel and Gasoline Prices Remain High

The crude oil market is showing signs of relief with prices near $90 a barrel. However, this ease in prices does not translate to the same for diesel and gasoline. In fact, their premiums over crude have widened significantly.

This unusual situation was highlighted by Patrick Pouyanne at the ONS energy conference in Norway on August 24, 2026. He noted that while crude oil can still pass through the Strait of Hormuz with minimal trouble, refined products are facing a 'triple threat': Russian refinery attacks, hazardous conditions for vessels in the Persian Gulf and Red Sea, and Ukrainian drone strikes on Russian refineries.

Russian refineries have taken a significant amount of diesel and gasoline out of global supply. Additionally, shipping hazards have made it expensive for product tankers to move fuel through these regions. Pouyanne explained that even small product tankers are not economically viable due to high insurance costs.

According to Shell CEO Wael Sawan, the company is doing its best to keep product moving, but acknowledged a 'tough few months ahead' for customers. U.S. gasoline prices are expected to remain above $4 a gallon, and consumers in Europe may see even higher fuel costs.