US Diesel Crack Hits Record $102.20 on Supply Disruptions
On Monday, the diesel crack spread reached an unprecedented $102.20 per barrel, reflecting escalating refining profits amid rising global supply issues stemming from turmoil in Iran and Ukraine as well as a surge in agricultural activity. This figure represents a 2.4% increase from $99.82 per barrel at the end of last week. The crack has experienced intraday peaks during five of the past six trading sessions amidst fears of fuel shortages, particularly following renewed assaults on Middle Eastern refineries. As diesel is essential for various industries, this spike may impact manufacturing, transportation, and energy sectors significantly.
Key facts
- US diesel crack hit an all-time high of US$102.20 a barrel on Monday.
- The crack was trading at US$99.82 a barrel, up 2.4% from Friday.
- 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 ago.
- International Energy Agency reported the throughput data last week.
- Farmers are most immediately affected due to harvest and planting seasons.
- Diesel has wide-ranging uses from manufacturing to heavy transport and power generation.
- Global diesel stockpiles under pressure due to wars in Iran and Ukraine.
- US threats against Chinese imports of Iranian oil could worsen supply disruptions.
Entities
Institutions
- International Energy Agency
Locations
- United States
- Iran
- Ukraine
- China
- Russia
- Middle East