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U.S.-Iran tensions lift crude prices as U.S. diesel margins hit $100
U.S. diesel crack spreads surpassed $100 per barrel for the first time, highlighting a tightening supply outlook for the fuel.
Oil prices rose as U.S. and Iranian statements earlier this week dimmed prospects for peace in the Middle East, with the escalation raising market expectations for disruption around key shipping routes. OilPrice said Brent traded around $91.3 per barrel and West Texas Intermediate around $85.1 per barrel at the time of writing.
The report also pointed to stress in refined products, noting that the U.S. diesel crack spread topped $100 per barrel for the first time in history. It linked the move to a deepening diesel supply crunch tied to the Middle Eastern war.
According to OilPrice, the political backdrop included Iran’s indication it would adopt a more aggressive posture and the U.S. refusal to extend a June ceasefire that ended within weeks. The outlet added that Trump threatened action if Oman proceeded with a deal involving joint management of the Strait of Hormuz.
OilPrice further cited global refining conditions, saying the International Energy Agency reported earlier this month that global refinery run rates were 80.9 million barrels per day, down 5 percent, indicating constrained processing capacity.
Latest closeWTI crude $82.40 ▲1.4%|Brent $88.59 ▲1.8%