Global Diesel Prices Soar After Refinery Attacks
Diesel prices surged on Monday after attacks on refineries in Russia and Saudi Arabia disrupted global supply, according to KITCO.
The U.S. ultra-low sulfur diesel futures contract rose 7.4% to settle at $4.19 a gallon, the biggest gains since July 13. European diesel refining margins also jumped nearly 10%.
The attacks on refineries in Russia's Tatarstan region and Saudi Arabia's Jazan refinery have taken substantial amounts of diesel off the market, said Mizuho analyst Bob Yawger.
The blockade of the Strait of Hormuz has sharply cut global diesel supply by choking the flow of both fuel and crude oil from the Middle East. Ukraine's attacks on Russian energy infrastructure have also prompted Moscow to ban exports of gasoline and diesel until January 2027, further tightening global supply.