US Diesel Prices Hit Record High Amid Global Fuel Shortage

The US diesel crack spread has set a new record high, exceeding $100 a barrel. This measure indicates the profit margins for refiners to produce diesel from crude oil.

This milestone was reached after a near-perfect storm of factors contributed to rising fuel prices. The initial weeks of the US-Iran war saw a surge in diesel prices, followed by disruptions due to Ukrainian drone attacks on Russian refineries.

The temporary bans on exports of diesel from Russia pushed up global prices as buyers scrambled for alternate supplies. US diesel exports have reached record highs, but domestic supplies are at their lowest since 1996.

Infrastructure issues worldwide, including disruptions in Libya and Saudi Arabia, have added pressure to tight fuel markets. As a result, refiners are deferring planned maintenance work, raising the risk of unplanned outages that could further send prices soaring.