Via tayloroilco.com
US diesel refining margin tops $100 a barrel as supply tightens
The crack spread reached a record above $102 while domestic inventories entered late August at their lowest since 1996.
The US margin for producing diesel from crude oil rose above $100 a barrel for the first time, reaching a record as global fuel supplies tightened, Bloomberg reported Tuesday.
The diesel crack spread hovered near $100 after climbing above $102. It settled in triple digits for the first time Monday.
The previous record was $89 a barrel in October 2022, when fuel shortages intensified before the first winter of the Russia-Ukraine war.
Diesel prices rose during the opening weeks of the US-Iran war and remained elevated as crude and refined products were constrained by the closure of the Strait of Hormuz.
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Ukrainian drone attacks on Russian refineries and temporary Russian diesel-export bans added pressure. Disruptions in Libya and Houthi attacks in Saudi Arabia also tightened the market.
Record US diesel exports have helped cover some shortages, but domestic supplies are at their lowest for late August since 1996. High margins are also encouraging refiners to delay maintenance, increasing the risk of unplanned outages.