Commodities
Home›Commodities›Energy›US diesel reserves near 23-year lows amid global refin…
US diesel reserves near 23-year lows amid global refined-products crunch
OilPrice says US diesel inventories are at 23-year lows, while crack spreads have reached a record $102 per barrel, raising the risk of higher food and goods prices.
OilPrice reports that Brent and WTI futures are still below $100 per barrel, with some of the price pressure eased by governments releasing strategic oil reserves. The outlet argues the bigger stress point is downstream, where disruptions tied to the Russia Ukraine war, strikes against energy infrastructure, and ongoing issues around the Strait of Hormuz have intensified supply strains for refined products.
The report highlights diesel as the main concern ahead of the Northern Hemisphere harvest. It notes that higher fuel costs can flow through to farmers and freight operators, eventually showing up in the prices of food and other goods.
OilPrice also points to depleted inventories, saying US diesel reserves are near 23-year lows and European stockpiles are near levels last seen during the 2022 energy crisis. It adds that the front month US diesel crack spread, measured as the NYMEX one month heating oil WTI crack spread, hit a record $102 per barrel.
The outlet links the tightness to a broader refined-products “perfect storm” and cites a JPMorgan note warning that a global food crisis could emerge as soon as next year. It also mentions that Oil extended gains after another vessel attack was reported near Hormuz and that President Trump said he had no interest in extending the interim Iran peace agreement that expired Monday.
Latest closeWTI crude $82.40 ▲1.4%|Brent $88.59 ▲1.8%