Diesel Price Surge Could Send WTI Crude Back to $90

The New York Harbor diesel crack has reached $104.62 a barrel on August 18th, ranking it as the 21st highest reading since 2006.

This figure is significant because every reading above it belongs to this year, indicating that diesel prices are setting the tone for crude oil prices.

Between August 5th and 18th, crude oil rose by 12.6% while diesel increased by 19.1%, causing the crack to widen by a quarter during this period.

Crude inventories have been plentiful, with a stock level of 428.8 million barrels as of August 14th, exactly matching the five-year average. In contrast, distillate inventories are at 12.8% below their average at 105.6 million barrels.