Commodities
Diesel Crack Spread Surges to $50.34 Amid Geopolitical Tensions and Refinery Constraints
The diesel crack spread has surged to $50.34 per barrel over gasoline, marking a significant expansion in the margin between diesel and gasoline prices.
This increase is likely to lead to higher fuel costs for consumers at the pump, regardless of whether crude oil prices remain flat.
The EPA's temporary waiver on gasoline supply from September 1-15 will further exacerbate the situation by compressing petrol margins while diesel faces a tightening refinery window.
This perfect storm of factors has been exacerbated by ongoing geopolitical tensions in key energy-producing regions, including the Red Sea, Hormuz, Bab al Mandeb, and Black Sea.