Diesel cracks have hit record highs above $100/bbl as global product supplies tighten sharply. Middle East and Russian diesel exports have fallen by more than 50%, while inventories continue dropping.
Diesel prices could climb further this autumn, adding inflation pressure as seasonal demand rises. The oil market has remained complacent for months amid the worst disruption in global supply, with crude oil futures rarely topping $100 per barrel over the six months in which tanker traffic at the Strait of Hormuz is a trickle compared to pre-war levels.
The diesel market has tightened in recent months, with the diesel crack spread, the pricing difference between a barrel of crude oil and the diesel refined from it, hitting record highs in both the United States and Europe.
