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Diesel squeeze raises refinery margins amid Middle East uncertainty

Diesel prices in Europe are up about 70% from pre-war levels, and U.S. diesel crack spreads topped triple digits earlier this week.

Reported · Written up by our desk · Energy

OilPrice reports that the outlook for the Middle East conflict is still weighing on global fuel availability, with the United States warning Iran of what it called the toughest sanctions in history.

The piece says the strain is being amplified by reduced refining capacity, and that even if hostilities improved, the resulting fuel squeeze could persist for months and pressure the global economy.

While Brent and West Texas Intermediate remain below $100 per barrel, the article argues that pump prices are rising faster than crude. It cites Reuters reporting that diesel in Europe is up around 70% versus pre-war levels, and that diesel now costs more than jet fuel in Europe for the first time in over a year, according to LSEG data.

OilPrice adds that refinery margins have been running at record highs worldwide, pointing to the U.S. diesel crack spread reaching triple digits earlier this week, with the premium over crude rising as high as $102 per barrel on Monday before easing to about $100 on Tuesday.

Latest closeWTI crude $82.40 ▲1.4%|Brent $88.59 ▲1.8%

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