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Diesel jumps as refinery attacks tighten global supply ahead of peak season
Europe refining margins rose 10% and U.S. diesel futures gained 7.4% to $4.19 per gallon as retail prices climbed to $5.32 a gallon.
Diesel prices surged earlier this week amid reports of additional refinery disruptions, including a Ukrainian attack on a Russian refinery and a Houthi attack on a Saudi refining facility, intensifying an already tight global fuel market heading into peak demand season.
According to Reuters, refining margins in Europe rose by 10%, building on an already high starting point as supply constraints linked to the war in the Middle East and Ukrainian drone attacks on Russia’s refinery network supported near record profitability.
In the United States, diesel futures posted their sharpest increase since July, rising 7.4% to $4.19 per gallon on Monday. AAA data cited by OilPrice showed the average U.S. retail diesel price reached $5.32 per gallon on Tuesday, up from $4.88 a month earlier and $3.71 a year earlier.
OilPrice said the higher diesel costs are a concern because diesel underpins freight transportation, farming, and winter heating, and sustained price increases can flow through to consumers and broader inflation.