Diesel Prices Soar on Global Supply Chain Disruptions

Diesel prices surged globally on Monday due to tightened supply chains following attacks on refineries in Russia and Saudi Arabia. The U.S. ultra-low sulfur diesel futures contract rose by 7.4% to settle at $4.19 a gallon, marking the biggest gain since July 13.

The European diesel refining margins jumped nearly 10%, with the price of fuel far exceeding the cost of crude oil. This surge is attributed to the confirmation of an attack by Ukraine on a refinery in Russia's Tatarstan region and another attack by Yemen's Houthis on the Jazan refinery in Saudi Arabia.

The refineries have been severely impacted, with the Jazan refinery shut since July 27 due to an earlier strike by the Houthis. Plans to restart it have been postponed from August 15 to August 30, according to industry monitor IIR Energy.