Diesel Shortages Take Center Stage as Oil Prices Rise

Oil prices rose after US President Donald Trump rejected an Iranian proposal to reopen the Strait of Hormuz, restoring geopolitical premium to Brent and West Texas Intermediate.

Brent crude climbed about 1.5% to $106 a barrel in Asian trading, while WTI gained roughly 1.1% to $93.40.

The recovery of Middle East crude flows is improving, with preliminary Kpler data showing exports from key producers averaging 12.8 million barrels a day in September, the highest since the war began in February.

However, refined products are now experiencing a tighter market, particularly diesel and refining capacity, which remain considerably tighter than crude itself.