Diesel prices surge as refinery attacks squeeze global fuel supplies
Diesel prices surge as refined product supplies tighten in US, Europe
Diesel prices are surging in the United States and Europe due to refinery attacks that have limited global fuel supplies. US ultra-low-sulfur diesel futures increased by 7.4% to $4.19 a gallon, the largest one-day rise since July 13, according to Reuters. European diesel refining margins also rose by nearly 10%. The price of diesel has been rising faster than crude oil benchmarks as traders focus on refined product shortages rather than crude oil itself.
Diesel is crucial for freight transport, agriculture, construction, and industrial activities, so prolonged shortages can directly impact transportation and food costs. Europe's refined-fuel market has been facing significant disruptions since the war-related shutdowns around the Strait of Hormuz. The market is particularly sensitive to diesel because refining capacity cannot quickly switch between products.
Russian restrictions on gasoline and diesel exports through January 2027 have further reduced the availability of refined fuel for international buyers.
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