Diesel Prices Skyrocket Amid Global Energy Market Disruptions

Diesel prices have hit record highs due to disruptions in global energy markets. Renewed U.S.-Iran hostilities and Ukrainian attacks on Russian refineries have reduced fuel oil production, making it harder for cargo shipping and power plants to get what they need.

The low inventories of gasoline and diesel are driving refiners to focus on those operations, leaving less fuel oil available for other uses. This is compounded by conflicts that affect supply at the source and make shipping more complicated.

Middle East fuel-oil exports have fallen 45% year over year from March through August, while Russian fuel-oil exports reached a record low in August due to attacks on refineries.