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Diesel stocks tighten as crude prices near $91 amid refinery disruptions

Crude added 1.6% on Monday to just under $91, while distillate inventories remain about 14% below their five-year average and retail diesel hit an all-time high of $5.85 a gallon on Sept. 4.

Reported · Written up by our desk · Energy

Crude oil traded just under $91 after rising 1.6% on Monday as market attention shifted from supply to what happens to barrels once they reach refineries, FXStreet wrote. The report said crude prices have climbed about $10 from the $81 area over nine sessions without any production shutdowns. A key driver was renewed disruption at refining capacity, with FXStreet citing a Financial Times report that Saudi Aramco’s Jizan refinery, a 400,000 barrel-a-day plant on the Red Sea coast, was struck again on Monday. Damage was being assessed and the company had not commented, according to the report, which said the plant was also hit in July and that an earlier strike briefly interrupted operations. The tightness shows up more clearly in refined-product inventories and pricing, FXStreet added. U.S. distillate stocks, which cover diesel and heating fuel, sit about 14% below their five-year average, reaching the lowest seasonal level in the Energy Information Administration record and the lowest for any August since 1951, while retail diesel set an all-time high of $5.85 a gallon on Sept. 4. Inventory data from last week also pointed to a supply imbalance at the product level. FXStreet said crude oil stocks fell by 4.45 million barrels in the week to Aug. 28, while distillates rose 0.796 million barrels against forecasts for a larger draw, and it noted that U.S. commercial crude sits about 1% above its five-year average.

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Latest closeWTI crude $90.70 ▲0.5%

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