Commodities
Home›Commodities›Energy›Wholesale diesel prices near $180 a barrel, set for $2…
Wholesale diesel prices near $180 a barrel, set for $200 risk
FreightWaves cites U.S. distillate exports at nearly 2 million barrels last week and says Gulf Coast refinery capacity is capped near 5.3 million barrels a day, leaving limited room for shocks.
Wholesale diesel prices are rising to about $180 per barrel on world markets, with risk of pushes above $200 if a Gulf Coast hurricane threatens refining infrastructure, according to Tom Kloza, Chief Energy Advisor for Gulf Oil, speaking on FreightWaves Today.
FreightWaves reports that the spike reflects a tightening in refined products, driven by war-related disruptions, weather and an expanding threat from drone attacks on oil infrastructure. Kloza warned that drones have begun to hit refining capacity in multiple regions in the span of weeks, describing refineries as vulnerable to rapid, high-impact outages.
The outlet also pointed to demand and export dynamics, citing U.S. Energy Department data showing the United States exported nearly 2 million barrels of distillate last week, a record, while domestic consumption runs close to 3.5 million barrels a day.
FreightWaves added that refinery margins are offering roughly $90 more per barrel of diesel than crude costs, but U.S. maximum domestic output is capped near 5.3 million barrels a day. Kloza said global refining capacity is short by an estimated 7 to 9 million barrels a day, a gap worsened by Venezuela’s decline and Latin America’s growing reliance on U.S. diesel supply.
Latest closeWTI crude $81.19 ▼2.5%