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US diesel crack tops $102 a barrel as supply disruptions intensify
The diesel crack premium rose to $99.82 a barrel, up 2.4% from Friday, as refinery disruptions coincide with peak seasonal fuel demand.
The US diesel crack, a gauge of refining profitability measured as the premium of US diesel futures over US West Texas Intermediate crude, jumped to an all-time high of $102.20 a barrel on Monday, reaching $99.82 a barrel and up 2.4% from Friday, according to Reuters, cited by SCMP Economy.
The move reflects heightened concerns about fuel availability as supply disruptions tied to wars in Iran and Ukraine collide with peak agricultural consumption season, with fresh attacks on Middle Eastern refineries adding to existing issues.
Reuters said the diesel crack has set new intraday record highs in five of the last six sessions. Global refinery crude throughput averaged 80.9 million barrels per day in July, down about 5 million bpd from a year earlier, the International Energy Agency reported last week.
The sharp rise in diesel prices is expected to hit farmers first, as they rely on fuel for tractors and harvesters during northern hemisphere harvest and southern hemisphere planting, with longer-term spillover risks to broader sectors that use diesel for manufacturing, heavy transport, and power generation in parts of the world.
Global diesel stockpiles are described as under pressure due to the ongoing wars, with Russia and the Middle East identified as key diesel suppliers.
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