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Diesel cracks surge to record highs as supply squeeze deepens
ING says the ICE gasoil crack hit a record $79 per barrel Tuesday, while the U.S. diesel crack is trading above $100 per barrel near last month’s all-time highs.
OilPrice reports that escalating Middle East tensions and a Russian ban on diesel exports, alongside Ukrainian drone attacks on refineries, have pushed middle distillate cracks to record highs this week.
According to ING’s commodities strategists Warren Patterson and Ewa Manthey, the ICE gasoil crack reached a record high of $79 per barrel on Tuesday, reflecting tight diesel supply versus crude.
OilPrice adds that in the United States, the diesel crack is trading well above $100 per barrel, hovering near all-time highs hit last month.
ING said market structure also signals acute near-term tightness, pointing to an ICE gasoil Sep/Nov spread in backwardation of $80 per tonne, and expects cracks to stay highly elevated and volatile as seasonal demand strengthens.
Latest closeWTI crude $90.70 ▲0.5%